There’s nothing quite as satisfying as knowing your package has been shipped and is on the way, is there? But for many of us, this type of impulse buying and shopping became an all too familiar practice in the last few months, as we spent almost the entire first half of 2020 in our homes.
With many places across the US shutting down, putting shelter-in-place, quarantine, and lockdown orders, preventing us from socializing, going to work, or even heading out for tasks like grocery, a lot of 35% of Americans found themselves spending time shopping online. Whether it was buying groceries and extras or spending money on indulgences and add-ons like gourmet coffee and designer shoes, there are several impacts of these spending habits on your credit score.
Here’s what some of these effects are and what you need to beware of:
You might accrue excessive debt
All that spending on your credit card will inevitably lead to a lot more debt than you intend. Months of relying on your card due to the boredom, stress, and financial insecurity that prevents you from using cash can be difficult to break out of now that things are looking up. It may have seemed like a good idea at the time, but in retrospect, it’s not all that great to be stuck with excessive debt in addition to other expenses.
This debt, and failure or delay in payments, will show up on your credit report and affect your score significantly.
Missed payments are a common problem
Again, missed and delayed payments, whether it’s for bills, utilities, or other things, will appear on your credit report in addition to the spending you’ve done. It’s unsurprising that many of us are struggling to make timely payments due to the lack of jobs, reduced income, and overall financial uncertainty that this pandemic comes with, which s all the more reason to be more mindful of your credit score.
It will be harder to recover from these financial setbacks
It’s unsurprising that it will take a while before many of us are out of this sinkhole of debt and financial insecurity, but it’s important that you do whatever you can to boost your credit score. Work with us for credit repair services, and our experts will help you cope with these challenges.
It’s important to seek help from our credit score specialists because a low score can impact the upcoming financial year too. From challenges in finding a new job to renting an apartment and paying way more in debt, these problems are only likely to escalate.
Contact us to know more about how we can help you.