5 facts that help to go through this crisis to safeguard your business and personal credit scores.

source: www.cafecredit.com

The dawned crisis is a complicated time for a small businessman. Because he has to find a way to overcome from uncertain cash flows, payroll and bills. Financial sustainability, debt and unemployment are few challenges many businesspersons have to experience nowadays. If you are not able to do payments because of the falling of cash, it will affect your personal and business credit scores. Therefore, make use of the following strategies to protect your credit score until passing this pandemic time period. Followings will guide you to learn about how to protect your financial status and how to manage your earnings, deposits and expenses.

1). Look for any doubtful activity by reviewing your bank accounts regularly.

The ongoing crisis and financial relief cause for the growth of hoaxers and criminals. Your business is in danger hence the CARES ACT. Because, its share of scam can aim your business.

According to the Cybersecurity and Infrastructure Security Agency (CISA), there are tricks of exposing personal data through emails with anxious attachments or links. Sometimes there are fake charities and financial aid sites in such away. Therefore, take care of any email, text message, phone call or social media post with links and attachments.

By getting correct information from government sites about business loans, you can avoid scams. When engaging in charity programs follow the same way. When you get an email with links, don’t click them first. Before opening the link, go to the financial institution or creditor’s site to get information. After ensuring the information you can go through the link. That will be more protective.

2). Estimate about the things you can pay.

First make a rough sketch to pay more bills as possible without missing the payments. Then think about your budget and cutoff unimportant costs. Then allocate that money for important expenses such as leases, rent, loans, credit card payments, etc.

To do the above process easily, digitize your budget with an app like Mint Fron Intuit. This app can manage your money by integrating with banks, credit card companies, lenders etc.

From such kind of app, you can manage all your transactions from credit cards and debit cards. Then you can have an idea about all the expenditures. And also you can get to know about the costs you can cut off easily. Also you can immediately update payments that decrease due to shelter-in-place orders.

3). Use a safeguard to monitor and identify credit.

By keeping your eye on your credit and identity in a regular manner, you can avoid the misusage of your credit and identity. Then it will not harm your credit score.

“Bloom” is an app that has a partnership with TransUnion. Three main characteristics are included in that single app. Those are; monitoring of credit freely, data breach monitoring and smart identity features. Therefore, you can avoid anyone from stealing your data.

4). How to deal with your creditors.

Never hesitate to expose your difficulties regarding paying bills to your creditors. By allowing them to know about your financial situation you can protect your credit score. That will make a good sense within creditors about yourself.

During this time period, you can make use of postponed payment plans. But before doing so, you should get to know about all the information about the payment. Such as, is there a balloon payment in six months, or will the lender add those payments to the end of the loan, etc.

5). Save your cash by limiting the purchases.

This is not a proper time to buy unnecessary things though you have money. You should reduce your expenditures. That will help you to pay your bills without ignoring. That will improve tour credit scores.

You can try on an app like “PocketGuard” to minimize your expenses and purchases. It is a budgeting app that is linked to your financial accounts to manage your depositing, earning and paying. And also that app is able to give you suggestions to manage your expenses.

As a businessman you should be able to maintain your financial status during this pandemic time period. Due to the ongoing economic crisis, people tend to cheat others and misuse their business and identity. Therefore, you must be alert to save your cash as well as credit scores. Stealing can take place in many ways such as; emails containing links, charity sites, etc. So always be careful when you are engaging in those. Above mentioned 5 factors can be considered as pillars that hold a safe shelter to your business and personal credit scores during this crisis. So, always try to obey those to save your financial status.