Sustain Your Gains

Many have been impacted by economic factors outside of our control. Making financial plans can feel demotivating if money is tight, but understanding your goals is the key to making productive financial decisions.

• Know where you stand. Make sure you continue to monitor your credit report and score. Checking your credit report helps you baseline your credit health and enables you to keep track of any changes to your credit history, which may in turn affect your score.
• Continue making payments. Your payment history is an important factor in calculating your credit score, so making on-time payments consistently, if you're able, is a good way to protect your credit health. If you think you may struggle to pay, talk to the company you have the account with as soon as you can, before you miss the payment.
• Guard against fraud. With new and sometimes confusing information out there about student debt relief and programs to help navigate economic hardships, the environment is ripe with opportunities for fraudsters. If someone gets access to important information like your Social Security number, they can wreak havoc on your finances and credit health. Remember, no government organization will ask you to share sensitive information over the phone, email, or text message. Only use official government websites when submitting information online.

Learn more about how to protect your credit.

When it comes to paying off your credit card balances, you have multiple options. It can be tempting to only pay the minimum. Why pay more if you don't have to? However, paying the balance in full is best when you're able. It may help prevent your credit score from lowering and can save you money long-term.

If times are tough and you've been relying on your credit cards to help you pay other bills, it's understandable if you feel you can only afford the minimum payment temporarily. Don't feel defeated — you're still ensuring your credit remains in good standing. Continue to keep track of your payment schedules and credit limit and, when you can, slowly work to pay down that balance. Even if you have to chip away at it, you're establishing a consistent, healthy habit that will serve you well for your long-term financial goals.

Learn more about paying your credit card debt

If you have debt and are motivated to build a savings account at the same time, a balanced approach can work. You don't need to decide between them. Keep in mind:

• Know your score. Check your credit report and score so you know where you stand.
• Decide which debt to tackle first. Credit cards tend to have higher interest rates than other types of credit, such as a mortgage. As a result, you will likely want to prioritize paying this debt off first.
• Understand the benefits of savings. While it's a good idea to use most of your extra cash for paying down high-interest debt, you can reserve some to slowly build up your savings account. Putting money aside may prevent you from having to take on additional debt to cover an unexpected expense in the future.

Learn more about how to tackle your debt

• Make all your payments on time
• Keep your balances as low as you can
• Open new accounts sparingly
• Be mindful about closing long-standing accounts — their history may be reflecting positively in your score
• Check your credit report regularly to ensure it is accurate

Get the details on other ways to improve your credit