 TITLE: How Does Inflation Affect Your Credit? CONTENT: Managing Credit in Times of Inflation\n-------------------------------------\nStrategies to consider for managing your finances in times of inflation include diversifying your investment holdings, seeking a raise or starting a \"side hustle\" to boost your income. Here are a few other basic steps:\n*   **Think hard about major purchases.** Factors influencing today's inflationary trends include limited availability coupled with high demand for goods and property in many parts of the U.S. That means this may not be the ideal time to buy a car or purchase a house, for instance.\n*   **Consider selling surplus assets.** When prices are rising, there's typically a seller's market for many types of high-value assets, so if you have an extra car, vacation home, RV, or other type of property you've been considering selling, inflation and market demand could help you get top dollar on the sale. Note, however, that inflated prices will work against you as a buyer if you need to replace the item you sell.\n*   **Plan for a rainy day.** Prudent uses for any money you're able to save or that you gain from selling assets include bolstering your household emergency fund and retirement savings.\n*   **Pay down debt.** Once your bills are paid and your other major financial priorities are covered, consider using any extra income to pay down outstanding debt. While consumer prices are increasing, the cost of existing debt—especially loans and credit cards with fixed interest rates—remains stable, so it can be a good use of funds. In addition, lowering overall debt and credit utilization can boost your credit scores and spare you interest charges.\n*   **Get assistance if you need It.** If rising prices stretch your household expenses to a point where you're having trouble paying bills, consider working with a certified credit counselor to get advice and assistance with budgeting, prioritizing debt and, if necessary, help negotiating with your creditors to ease your monthly payments. You can also look for financial assistance in the form of grants, government benefits and access to services.\nInflation isn't a major influence on credit, but when prices are increasing, making good financial choices can help you build or maintain a strong credit profile, so you can borrow money when you really need it. You can check your credit report and get your credit score for free with Experian to make sure you're still on solid ground. END