Credit Security Group: How to Protect Your Credit Score During Financial Stress of COVID-19
DALLAS, April 6, 2020 /PRNewswire/ -- Eddie Johansson, president of Credit Security Group (CSG), announced the release of a free guide: "Credit Advice for Difficult Times" to help those hurt by layoffs and income insecurity due to the pandemic.
Anyone can read and download the free guide by going to CreditSecurityGroup.com.
"We've worked with thousands of families to build a solid credit foundation that can take them years of hard work. It hurts to see them in danger of losing it. We want to help everyone get through this very difficult time with as little damage as possible," Johansson said.
The guide explains that being late on a $1,000 payment has the same effect on your credit score as being late on a $10 payment. This can be very helpful if you have to make difficult choices between multiple credit accounts.
CSG's guide includes key points on how the system works. For example, the section: "Dollar amounts don't matter" applies to credit cards where it is not the amount owed that determines your credit score, but the ratio of balance to limit. This can help people balance their card use and payments for their best result.
"Credit is critical to family finances and most don't know how the credit scoring system works," Johansson said. "For the same amount of money, they can make decisions that hurt their credit or help their credit."
The guide also explains the concept of severity and the difference in score damage between being 30 days late on two accounts and being 60 days late on one account. This important concept can help minimize damage to your credit.
There is also a section on negotiating with creditors and how to handle collection notices.
"This is a medical crisis, but many are also under severe financial stress," Johansson said. "Stress leads to bad decisions and is increased by the unknown, by a lack of knowledge, and by not being able to act with confidence," he said. "We hope sharing our knowledge will reduce stress and help families make better decisions."
Eddie Johansson is qualified in federal court as an expert witness in Fair Credit Reporting Act cases and is a frequent guest speaker to financial institutions. He is president of Credit Security Group which advises lenders and borrowers on the credit scoring system.
SOURCE Credit Security Group
Share this article