When money is tight, most people focus on the basics: housing, food and utilities. When loan and credit card payments aren’t paid, it can cause credit problems down the road.
Why It's Important To Protect Your Credit
Your credit affects more than loans. It can influence where you live, the jobs you qualify for and how much you pay for insurance, phone plans and other services.
Because payment history plays a major role in your credit score, late or missed payments can lower your score and remain on your credit report for years.
Be Careful With Your Financial Options
It’s tempting to look for quick fixes like payday loans or maxing out your credit cards, but those options often cost more in the long run.
Before you make any decisions about how to help your financial situation, you need to understand your options. Taking a few simple steps now can help protect your credit and future goals.
Review Your Credit Reports
To protect your credit, you need to know what’s in your credit reports. Reviewing them helps you check payment history, ensure hardship plans show correctly, spot mistakes or unusual activity early.
Review reports from the three major credit reporting bureaus: Equifax, Experian and TransUnion. You can request free copies through AnnualCreditReport.com.
Make at Least the Minimum Payment if You Can
A job change, reduced hours or unexpected bills may force you to rethink your budget. You may pause savings or cut unnecessary expenses. Even so, try to keep paying your creditors. You can set up automatic payments to prevent missed due dates.
When possible, pay at least the minimum amount due on time. Even if you can’t make the minimum payment, a partial payment shows your lender that you’re making an effort.
Ask Creditors About Payment Options
If you can’t make your minimum payments, contact your creditors right away. Many lenders offer hardship options based on your situation.
These options may include:
- Temporary lower payments.
- Payment pauses.
- New due dates.
Contact your creditors to discuss payment options and always get the details in writing for your records.
Keep Good Records
Save emails, letters, notes from phone calls and copies of payment plans or disputes. Store documents in one secure place so you can find them later.
Financial Counseling Can Help
We partner with GreenPath Financial Wellness1,2 to offer confidential financial counseling for Members. If financial stress feels hard to manage, you can speak with a counselor to explore options and create a plan that works for you.
1. GreenPath Financial Wellness (“GreenPath”) is not affiliated with SchoolsFirst Federal Credit Union.
2. GreenPath does not disclose names or personal information of Members enrolled in their programs. Services provided by GreenPath are confidential; GreenPath does not share Member information with SchoolsFirst Federal Credit Union without consent. GreenPath does not share information with any credit bureaus.