Top 5 Life Events that Impact Credit Score

by Tyler P. A Passionate Blogger - Entertainment

Major life events not only affect people emotionally and mentally but they can also have a significant financial impact that can be challenging to recover from depending on the severity and new situation the individual finds themselves in. One of the most common events is divorce, where two people who become one and potentially joined their finances and made high-dollar purchases together, decide to separate and now must work out the financial details. This can have some of the worst impacts to a person’s credit score whether it is because they cannot pay the bills assigned to them when the dust settles or they have gone into debt with the process and can’t afford to keep up routine monthly payments. The best way to minimize the risk is to keep bills up-to-date, don’t spend more than you can afford and have savings set aside. If the worst happens, talk with creditors immediately to set up an affordable plan or work with a credit repair company that can help out.

Student loans affect credit in a way that can be positive and negative. The high balances are viewed differently than other bills so the payment schedule is the most important factor. If you are behind on student loan payments then this will reflect negatively on your credit and will bring down your score. Instead, get with the company that holds the loan and ask about financial arrangements specifically for those with low income, money hardships and other situations.

Sometimes, no matter how hard you try to do the right thing and make smart decisions, life has a way of bringing things down. Natural disasters, unexpected health conditions and accidents are three events that individuals have little control over in preventing but have to deal with the many consequences that come from these. Financial hardship is one of the primary results because of multiple doctor bills, expensive repairs and reduced work hours or no longer being able to work at all. Individuals can get bad credit help through a variety of resources that will look at the specific situation and find solutions that work for the client. It is important not to wait too long to look for this assistance because the worse the credit, the longer it takes to get out and the more severe the impacts. Creditors often have programs for extreme situations so as soon as you start falling behind, call them and ask about options and terms to apply for these.

Life happens and you have to work with the situation to make the best of it and keep your life, and credit score, from going down. Go online and check out tools and resources that show you how to set up a monthly budget, where to find great deals and what creditors look at when evaluating applicants for loans and purchases. When an unexpected situation takes place, you can be ready and ensure your credit score can handle the hit and recover quickly to get you back on track.