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.
5 facts that help to go through this crisis to safeguard your business and personal credit scores.
Reviewed by ViralBlossom
on
May 22, 2020
Rating:

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