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Unemployment can be one of the worst aspects one ever faces in life. However, with the global economic crunch it is not a very rare occurrence anymore. Most people are wary that it may take place with them at any moment. However, one important factor to consider, if there is a lay off waiting to happen, is the state of the credit status then. Yes, this is a reference to the credit history and the score. Here are four easy ways to protect your credit in the face of unemployment.

• Money Management: With not having a fixed income coming your way, you do not need to go reckless with your money. You are sure to have had saved some money. The trick is to manage what you have, instead of trying to incur more money by gaining loans. Plan out your expenses. Demarcate between necessities and the luxuries. Being prudent in the spending of money prevents any missed payments or negative entries to appear on the credit report. This will not lead to a drop in the credit score.

• Obtain unemployment Schemes: There are federal and state laws that sanction providing of unemployment checks to those facing layoffs out of the company policies. Although the checks are not actually hefty but at least lets you stay afloat in times of the crises. Moreover, having an unemployment benefit gives you a ground to seek negotiated rates for repayments on the credit card and similar loans. Talk out with the concerned authorities. If a negotiation is arrived at, then your credit score does not drop down because of arrears.

• Avoid incurring credit card debt: This is a very important means to avoid lowering of credit scores in times of unemployment. Stop using the credit card for purchases that are not absolutely necessary. Simply keep paying the minimum interest that is mandatory.

• You need to keep track of your credit report at frequent intervals. One annual free check is not sufficient. Order a monthly report against a small fee from the credit bureaus. Check for any minor errors in the report and order immediate dispute claim. However, as a precautionary measure, do not go in for measures like unsecured lines of credit and the like, in order to repair the credit score. Unemployment phases are not the best times to do so.

These tips can go a long way to help you fight unemployment without leading to a drastic drop in the credit score. Be wise with your finances and watch what you do with the money you have. All the best! Unemployment is a difficult phase, not an entirely inescapable one.

If you think money is the only thing that affects credit report then you are wrong to some extent. Your habits of expenses do create some reflections on your credit reports. Most of US citizens make purchases of around $7000 against $1000 savings. It creates unachievable elevation of debt creating adverse effects on financial planning.

These things are not applicable to moderate earners only. Many manicured mansion-living rich citizens also get trapped in this evil wheel of credit debt. Money is not at the root of every credit problem. You need to get away from some habits that create mountains of debts on your bank balance. Some of them are listed below:

1. To be a house poor
2. Making purchases without proper paperwork of your budget showing amount you can spend on expenses.
3. Frequently making purchases of amount more than listed in budget.
4. Making unnecessary purchases such frequently that you start considering those things as can-not-be-lived-without ones.
5. Making purchase of an item just because it is available on lower cost.
6. To go for shopping without making proper list of things you really need.
7. Despite of making such list, buy items that are not necessary for you at moment.
8. Avoid going as per saving strategy terming it as unachievable.
9. Habit of not clearing off credit accounts for months.
10. Making very frequent use of credit card in the absence of cash.
11. Paying minimum amount of credit debts every month.
12. Paying partial amount of bills even when it is possible to make full payment.
13. Opening new sources of credit regularly.
14. Utilizing any credit line to its maximum limit.
15. Crossing credit limit of card.
16. Keeping your credit cards in your purse or wallet all the time.
17. Crossing due date of bills.
18. Creating a false conclusion by equating an ability to afford payments and an ability to manage to pay for costly things.
19. Not maintaining proper balance of expenses by examining cheque book and bank accounts.
20. Avoiding study of monthly account statements.
21. Own more than one credit card.
22. Pay no attention to facts, regarding different expenses, which can affect your credit cards.
23. Using credit card for monthly bill payments.
24. Try to live rich life with rich likes even if it is out of financial limits.
25. Applying and using new credit cards regularly.
26. To buy new car when not really required.
27. Getting a charter on car.
28. Blown away budget at the time of Christmas and other festive seasons.
29. Making expenses without proper planning.
30. To make out-of-budget purchase rather than putting delayed satisfaction strategy into effect.
31. Providing justification regarding buy of unnecessary things rather than keeping control over desires.
32. To take away huge amount of dollars in wallet.
33. To stop at drive-through even if not required.
34. Frequent and unnecessary ATM withdrawals.
35. To buy snacks, even if not needed, at checkout registers.
36. Being lazy to check mails frequently.
37. Unorganized and half-filled financial documents.
38. Postpone exercising good habits to tomorrow or next week and so on.

Anyone from above mentioned habits can determine your progress in a mission to improve credit score. Rather than changing all habits at once, take off single one at a time.

Choose those first of which you think you can tackle and get a hassle-free win over them. It will boost confidence among you making you feel rich with good credit scores as you move forward with each one of them.

Do you ever wonder about sinking bank balance? Ever hope for some magic to repair your credit report? Ever wait for getting good credit score by clearing all debts? Rather than taking advises from your colleagues or family members and thinking over their “professional” solutions; you should ask yourself, your expenditure record book and frequent debt records some important question to bring credit report back on track.

1. Is this really necessary for me at moment?

How many times you really “need” extra things that you buy? Do these things are from not-able-to-live-without category? Despite of knowing that answer to both of questions is “NO”; attractive things in market must be adversely affecting your planned monthly budget by taking away considerable amount of dollar every time.

It is really important to ask yourself above question in order to keep credit loan in control. It will also allow you to get over your uncontrollable desire of buying unnecessary things. It will help you to control yourself.

Before leaving for a shopping keep one thing in mind that your control over own desire to spend more than required can help in credit repair mission to greater extent.

2. How to confirm my credit score?

If you are not yet sure about what is your credit score and whether you can term it as good, you can directly call Experian, TransUnion or Equifax to know more about it. The news can bring some smile on your face or can gift you some sleepless nights. Whatever it may be, it will help you to decide your strategy towards attaining good credit score.

3. Can I accommodate in Budget?

Your shopping for unplanned goods must begin with this question. Your budget status may postpone purchase date for that particular item but at the same time will help it from blowing away planned expenditure.

4. What do my savings say?

As you cannot predict about unplanned expenses in future, it is not advisable to keep your savings count to nil. It is definitely going to invite some credit problems in future at the time of unpredictable and unexpected expenses. No balance in savings will make you to use credit card for financial help. Thus, it is better to keep a slice from your monthly income into savings.

5. Do I have to clear any bills next week?

If you are thinking of clearing bills with due date marked as today; you are going to face shortage of money and time, both. So it is always better to check a week in advance about debts you have to clear for services used. It will provide you enough time to arrange money required and also ask for extension in time, if necessary. It will also prevent you from facing delay penalties or face some embarrassing situations like bounced checks.

6. What is status of my bank balance?

Current account balance can prove to be a leading star when it comes to credit repair. It is always better to check bank balance before making grocery shopping or paying bills. You must check whether amount you are trying to spend on credit or debit card fits in your bank balance or not.

7. Which bills are taking their share away?

Online shopping allows us to pay instantaneously but it does take time for transaction to reflect on your bank account statement. There might be any unpaid bill waiting to get cleared while you are making purchase of unnecessary thing on internet by trusting on bank account that is shown by statement. It will leave your account with insufficient funds to clear off the pending bill and can affect your credit report. Thus, it is always better to check if there are any unpaid bills prior to making any purchase.

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