The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
Some analysts and economists are worried there might be an economic contraction or recession in the very near future.
Stock markets are falling, oil prices are falling and other (slightly more advanced) indicators are making Americans worried about just how healthy the economy is. Some Americans may need to look for another job or open up their coffers (and potentially lines of credit or credit cards) as they pinch pennies. That’s when a good credit score may come in handy.
During times of economic difficulty, employers can become more sensitive to the credit of their potential employees and have been known to use a credit report as one factor to help them decide who to hire or not. Healthy credit also ensures that you can get credit, since banks tend to tighten up their lending policies during times of economic uncertainty are are less inclined to lend to people with bad or even average credit scores.
Ultimately, what makes people face difficult times in a recession is not always a lack of money but often a lack of options (job options, housing options, credit options, etc.) so a healthy credit score BEFORE a recession helps to ensure you have options IN a recession.
Here are some simple tips for getting your credit on track now, setting yourself up with one more tool that can help you navigate the rocky waters of a recession.
Remember, you should review your free annual credit reports for accuracy and dispute any errors you find. You can also get your credit scores for free every 30 days on Credit.com to keep an eye on any fluctuations.
No one wants a recession, and there’s also the possibility that we won’t even see one this year or next. But recessions are part of the regular economic cycle – they happen from time to time – so it’s best to be prepared for one. And the best time to prepare your credit for a recession is well before the recession occurs.
Image: iStock
April 11, 2023
Uncategorized
September 13, 2021
Uncategorized
August 4, 2021
Uncategorized