Maintaining Loans During a Time of Crisis
In the past two years, the world has seen its fair share of trials and tribulations.
So much has happened that we simply could not have predicted. This is what makes managing finances all the more complex, and even more, necessary. Many were faced with the task of maintaining loans during these periods of crisis.
Maintaining loans can be difficult, even when there isn’t a time of crisis. Many US citizens noted how they had issues managing this even prior to the pandemic of 2020. The coronavirus and subsequent shutdowns would make things much harder, though.
How It Hurts or Helps Your Credit
So what happens if you find yourself in hardship and still responsible for a loan? You have a few options, each with their own unique outcomes. The first thought you may have is to skip a payment. What’s the harm in missing one, right? Well, the truth is, there could be a great deal of fall out, even if it’s only one missed payment.
This boils down to your credit. Any missed payments like these will have a huge impact on your credit score. Only one payment that’s over 30 days delinquent can absolutely wreck your score. It stays on your report for seven years, and can be a whole ordeal trying to work past. It can take upwards of a year to work back from the hit your score takes. And to reiterate, yes, that’s only one payment. It doesn’t matter how diligent you’ve been in the past. It may feel unfair, but it’s the reality of the situation.
How Affinity Bank Helps
Your best bet, then, is to try to get out ahead of any such concern. Try paying ahead on your loan whenever you have the opportunity. Paying more the monthly minimum could be the key to keeping you in a good place, regardless of the unexpected. This also helps to raise your score, as credit bureaus like to see consistent, on time payments over time.
Looking to apply for a home loan? You’ve come to the right place. Contact us today to hear how Affinity Bank helps.