Unemployment as a hindrance to a clean report – Ways to protect your credit score

In November 2012, The Labor Department reported a 7 month low for unemployment rates in the US. Although such numbers are reassuring, recent data seems to confirm this entire trend of more and more people applying for their unemployment benefits. However, with the onset of 2014, there are reports about the improvement in the jobs report and the number of people who are still unemployed in the nation. Employers always look for a positive financial background as they hesitate to hire people who haven’t been good at managing their finances. This is the reason behind the employers checking the credit score of the potential employees in an attempt to know his recent financial background.

During such a situation, what if you don’t have a job and you can’t meet the necessities of your life? Credit repair is most often a prerequisite, especially when you’re about to take out a new line of credit. If you’re not someone who is well-versed with the different ways of repairing your credit score, you should read on the concerns of this article. If you’re being threatened by lack of income, there are ways in which you can mitigate the risk of reaching a state of financial doom.. Take a look at some such steps.

  1. Stick to your necessities: When you’re going through tough financial times and yet you have enough debts to pay off, you should know that saving some extra cash here and there can make all the difference that is required. Keep a watchful eye on your standard of living and the costs that you incur. Avoid excessive spending and splurging on your ‘wants’ even before catering to your “needs”. The longer you stretch your dollars, the better you can protect your credit score.
  2. Leverage benefits of discounts: When it comes to stretching your dollars, clipping coupons is one of the greatest ways of saving on supplies and groceries. You may even look for some other ways of saving money on groceries and other items. Saving on monthly bills is also possible by calling on the companies and negotiating with them for a better deal. Also be aware of the time during which most grocery stores offers different kinds of rebates.
  3. Always plan for odd situations ahead of time: Although pinching pennies don’t cut your dollars, planning for the worst is often the only way out. Overdue bills can easily result in serious needs for repairing your credit score and therefore you need to stick to your budget. If your rent is too costly, you may consider finding a roommate to share the costs. While you might not require taking help of the local social services office or the government-subsidized heating funds and some other programs, you should always create a back-up plan that can protect your credit score from being hurt.
  4. Prioritize your expenses: When you’re facing a situation where you have $1000 in bills but you have only $750 in your pocket, prioritization is the key. You need to minimize the damage to your credit score by ranking each and every bill in order of their volatility and importance. Among all your needs, you should take care of your basic needs like heat and shelter and mortgage, utility bills, auto loan, student loan and credit card debt. Pay according to your priorities in order to be able to make ends meet.

Unemployment is a tough phase of your life, which is undoubtedly difficult and during this time, your credit damage is the worst. Avoid seeking help of the professional credit repair companies as they often squeeze money out of your wallet and fail to offer you any worthy benefits. Instead, you should opt for DIY credit repair and adopt some smart spending tactics so that you’re capable of weathering a temporary storm.

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Author-Bio: This piece of article has been contributed Anjelica Cullin is an aspiring financial writer, Ms. Cullin is passionate about the writing features with regards to the debt management, credit card consolidation, student loan and so on. Ms. Cullin writes full time for numbers of financial sites and blogs as well.

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