 TITLE: How Does a Natural or Declared Disaster Impact My Credit? CONTENT: Ways a Natural or Declared Disaster Can Affect Your Credit\n----------------------------------------------------------\nA natural or declared disaster may destroy your home, damage your possessions or hurt you and your family. But while you're putting your life back together, a disaster can also impact your credit in several ways.\nIf you're injured or have to take time off to care for injured family members, you might not be able to go to work. Or you might be laid off or have your wages or hours cut. With your income reduced, you may find it harder to make your monthly payments, such as your credit card bills, rent, utility payments or mortgage. Missing payments can have a negative impact on your credit score.\nTo help make ends meet, you might need to turn to credit cards to pay ordinary expenses. And even if your income isn't affected, a disaster often means extra expenses. For example, after a flood or fire that damages your home, you might have to pay a hefty insurance deductible, pay a contractor for repairs or even pay hospital bills.\nOn the positive side, your credit cards may be able cover these disaster-related expenses and provide a quick source of needed cash. But using them will increase your credit utilization ratio, or the percentage of your available credit you're using. A credit utilization ratio of 30% or higher will have a more significant negative effect on your credit scores. Ideally, you should try to pay your balances in full each month or at least keep your credit card balances as low as possible.\nDespite the possible negative consequences of a disaster, there are steps you can take to preserve your credit and stay on solid financial footing. END