As unemployment rates in the U.S. soar past 44 million due to ongoing layoffs from the pandemic, many Americans are facing financial strain that could negatively impact their credit scores. With the economic fallout leading to missed payments on loans and credit cards, consumers must be proactive in managing their credit health. Regularly checking credit reports is crucial, as it allows individuals to identify and rectify any errors that could damage their scores. Utilizing payment deferment plans can also help maintain account status during tough times, but it’s essential to ensure these plans are reported correctly to avoid unintended consequences. Paying down existing debt, even if only the minimum, is vital since payment history significantly influences credit scores. Additionally, consumers should consider balance transfer cards to optimize debt repayment and take advantage of lower interest rates. Seeking guidance from creditors or nonprofit credit counseling agencies can provide further assistance in navigating these financial challenges.
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