 TITLE: How to Improve Your Credit Score During a Recession CONTENT: How Can a Recession Affect Credit?\n----------------------------------\nThere are many ways a recession can directly or indirectly affect your credit. Losing your job or taking a pay cut might make it difficult to keep up with your bills. If you miss debt payments or pay more than 30 days late, your credit score will suffer.\nIf your income is reduced, you might start relying on credit cards to pay your basic expenses. As your credit card debt inches up, your credit utilization ratio will rise too. This ratio measures the amount of revolving credit you're currently using compared with the amount of revolving credit available to you. If you begin using more than 30% of your available credit, your credit scores could suffer.\nApplying for too many credit cards, loans or other types of credit during a recession could also negatively affect your credit score. For each application you fill out, the lender will perform a hard inquiry on your credit report. Too many hard inquiries in a short time can suggest to lenders that you're having trouble making ends meet.\nRecessions can also make it harder to get new credit. During an economic downturn, lenders often set stricter standards for extending credit, which can make it more difficult to get approved for loans or credit cards. Maintaining or even improving your credit score during an economic downturn can help ensure you can access credit when you really need it.\nOn the positive side, some lenders may be more willing to work with borrowers who are struggling to make payments during hard times. They may offer options such as reducing or deferring payments, which can help you stay current on payments and maintain your credit score. If you think you may have trouble making your payments, contact the creditor as soon as possible to see if they can help—and try not to wait until a due date has passed. Being proactive can help keep your account in good standing—and keep your credit score from falling. END