Want to learn how to protect your credit during the pandemic? This article offers some tips to help you keep your credit healthy.

Even though COVID-19 restrictions in Florida are not as strict as they are in other states, many people are still struggling to make ends meet. Some have been out of work since the beginning of the pandemic.

Though unemployment claims have fallen in the past few weeks, many people are still not making what they did before March.

These tough times can lead to decisions that can damage your credit. Want to avoid harming the credit you have worked so hard to build? Read our advice below.

Defer Credit Card Payments

When you have credit card debt, it can be difficult to keep up, even when times are good. If you have lost your job because of COVID-19, you should get in touch with your credit card company. According to the Consumer Financial Protection Bureau, borrowers should contact their credit card companies to work out relief as soon as possible.

Keep an Eye on Your Credit Report

Every year, you get to look at your credit report once without risking penalizing your score. If you have not done so already, get a copy of your free report and study it to make sure that there are no mistakes. If there are any mistakes on your report, it could be causing your credit score to go down.

It’s important to know that if you have worked out an agreement with any lenders, they are still supposed to report your account as current. If they have reported that you are in default, report this mistake to the credit reporting agency where you found the inaccurate information.

Do Not Use Payday Loans or Other Predatory Lending Schemes

If you have ever used a payday loan service before, you know just how difficult it can be to get out of debt once you sign the dotted line. That’s because these types of loans have high interest rates, sometimes almost as high as 400%. If you cannot pay off your balance in full, you could quickly fall into a vicious cycle.

Before you consider one of these services, you should exhaust all other options. Apply for a loan at a bank or credit union. If you are still working, ask your boss for an advance. Talk to your family about your finances and how they can help. Avoid payday loans as much as possible.

Can’t Figure Out How to Protect Your Credit? Talk to an Expert about How Bankruptcy Could Help

In some situations, protecting your credit score at all costs does not make as much sense as other options. For instance, even though it will hurt your credit, filing for bankruptcy can provide relief from creditors and greatly reduce your debt.

Want to learn more about how bankruptcy could help you during this difficult time? Talk to the bankruptcy experts at AM Law in Miami today.