CIBIL: Financial crisis leaving you fearful? Follow these 7 strategies to protect your credit score

livemint.com:

Nobody likes to be amidst a financial crisis. But when it comes, it comes unannounced. It can affect everything from your fuel bills to credit card dues. And one thing comes as a collateral damage: impact on your credit score. 

Here we suggest a slew of ways to keep your credit score protected when you are amidst a financial crisis.

It is vital to remember that protecting your CIBIL score is imperative to maintain your financial stability. 

1. Make at least minimum payments: You should continue making at least the minimum payments on all your credit accounts, such as credit cards, and loans. Late payments can considerably impact your credit score.

2. Communicate with lenders: If you are facing some financial problems, you should contact your lenders to discuss options such as deferment, forbearance, or restructuring of payment plans. Many lenders are willing to work with customers during times of financial hardship.

3. Prioritise payments: If you’re still unable to make payments on all your debts, it is recommended to prioritise them based on their importance and consequences of non-payment. For instance, keeping up with mortgage or rent payments may take precedence over other debts.

4. Monitor your credit report: You should regularly check your credit report from all three major credit bureaus (e.g., Experian, CIBIL TransUnion and Equifax) to ensure accuracy and detect any unauthorised activity. 

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5. Utilise credit wisely: You should also limit new credit applications during a financial crisis, as multiple inquiries within a short period can negatively impact your credit score. Besides, avoid maxing out credit cards, as high credit