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Credit Repair | Dallas Residents: Your Credit and the Current Economy

Written by Credit Diva of Dallas | Jun 4, 2020 12:45:00 PM

Welcome to the revival of the Credit Diva of Dallas blog! We're going to cover current topics in credit repair Dallas residents should know about as well as best tips and practices. If you haven't already, subscribe to our blog using the subscribe box at the bottom of this page. When you do, we'll send you an email once per week on Thursdays with our newest post so you can stay educated and up to date on crucial information concerning your credit!

In this first post, we are going to address how the current economy and financial climate is changing how people make decisions about their credit and finances.

Good Credit Matters Even More

We're in the middle of the biggest recession most of us have seen in a lifetime. Due to the all-time high joblessness rate and uncertainty about what the future holds, lenders everywhere are raising the requirements to get a mortgage—some by 20 or more points.

Americans that used to be qualified to buy a home are suddenly "unqualified" through no fault of their own. What's more, the lenders are seeking an even bigger down payment than before. We're sad to say that the odds against homeownership are seriously stacked for anyone with less than stellar credit right now.

Weigh Application Decisions Carefully

We're not sure what the future holds for our community: most of us are living day to day and trying to make the best of the situations we are in. As your neighborhood expert in credit repair, Dallas, be careful: if you're considering new loans right now, more than ever, you have to be on your guard concerning big purchases.

  • With the uncertainty of the job market, taking on new debt is riskier than ever.
  • Unforeseen job losses could lead to missed or late payments and a hit to your credit score that will last seven years.
  • Taking on a new credit card to help with bills during a layoff might seem like a good idea now that could come back to haunt you in the future.

Be Careful With Deferral

Most of us get into a rhythm paying our bills. Many credit card companies and other lenders offered deferral options during the COVID-19 crisis to help take some of the burden off of borrowers who found themselves in a tough financial spot.

Getting out of that rhythm, if you don't have automatic payments set up, can make it harder to remember to pay those bills on time when they are no longer deferred. Be sure to check in on your payments and account for all of them being on-time, so you don't hurt your credit!

Start Thinking About the Future

This is a great time to start thinking about the future and your plans for yourself over the next five years. While we don't know what these days are going to bring, we do know that having good credit will always save you money, time, and frustration any time you are considering taking out a loan. Since most of us aren't going to win the lottery or can't afford to pay cash for a home or a new car, we need to make smart credit decisions now that will set us up for success in the future.

If you need help getting your credit back on track, contact Credit Diva of Dallas. Our team has 30 years of experience helping our community overcome the challenges of poor credit from the past with our proven DIVA system for credit repair, Dallas! Let's look to a brighter future together. We don't just offer a one-time, quick fix to your credit: we help you build the skills that will help you break the cycle of bad credit permanently.

We also offer ongoing coaching and mentoring for our clients. Have a question? Give us a call! We'd love to help you start your journey to the great credit you deserve.