The Most Common Ways a Natural Disaster Can Affect Your Credit Score

 


There are various ways that a large earthquake can significantly harm your credit and impair your FICO Score, and we will go over the most important ones below. To begin, it's crucial to understand that your Personal credit score  will not be impacted merely because you live in a disaster-affected area.


The following are the primary reasons why homeowners' credit ratings suffer after a natural disaster:


Payments that are late or missed – We've previously mentioned how costly a natural disaster can be, and so many homeowners are compelled to spend a ton of money on in-home repair just to keep their homes tolerable. But don't forget about the other fees and expenses:


  • Travel and lodging for those who must flee.

  • Fuel prices have risen.

  • Work was missed, resulting in a loss of income.

  • Prior to the crisis, the cost of supplies.

  • And there are many more.


All of this excess spending causes many homeowners to fall behind on credit card payments, auto payments, and possibly even their mortgage payments.


Debt-to-Credit Ratio – One of the primary elements determining your Fix your credit score is the quantity of debt you have as well as your debt-to-credit ratio. If your credit card has a $10,000 limit but you only have $3,000 on it, your debt-to-credit ratio is only 30%, which is great. Now that you've been through a natural disaster, if you're forced to place expenses on your credit card and possibly max it out, your debt-to-credit ratio will suffer.


Furthermore, an increase in total debt can harm your credit. Many homeowners who require big repairs will almost certainly need to take out a loan to cover the expense of the damage. A significant increase in your total debt amount can be detrimental to your credit score.So for more call us@+1-(888) 450-1822  or visit at website:   http://www.socialcreditrepairs.com/


Location: 31w W 34th St, New York, NY 10001, USA

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