COVID-19 Impact | Tracking and Maintaining Your Credit Score

As we all know, COVID-19 is continuously hitting the jobs and incomes of the borrowers due to which they are unable the EMIs on time. Doubtlessly, every sector has been severely affected by the COVID-19 impact, which means no payments on time, delayed EMI’s, and of course, low credit score.

Is not it? Moreover, the new borrowers and those having low credit score are majorly the worst hit in this scenario. Hence, everyone must have realized the importance of maintaining a good credit score, right?
Usually, the score above 800 is considered and preferred by the lending institutions.

Not just a loan, even if you are applying for the credit card, the score must be above 800. And, if your score is between 600 to 700, then quite obviously you have made some mistakes while repaying the amount. Lenders are always cautious about such credit scores before they grant loans or credit to any borrower.

So, if your credit score is going down, especially during these COVID times, it is a sign to manage your debts; otherwise, your application will be instantly rejected by the lenders! Are you a new borrower? Do not know what exactly the credit score is? Or don’t know how to track your credit score? Well, let’s take a quick look to resolve all your queries!

What is a Credit Score?

A credit score is basically a numerical representation of an individual's ability to repay the debt. It shows the creditworthiness of the borrower, and the number falls in between 300 to 900. A credit score of less than 700 clearly depicts you are not a responsible creditor and slacking off in repaying the debts. Contrary to this, a score that’s close to 900 is considered as a high credit score, which is further beneficial in quick application approvals for credit or loan along with multiple benefits.

In addition, a credit score is evaluated on the basis of credit history, credit inquires, repayment records, etc.

If you want to track your credit or CIBIL score, you can quickly check on different financial advisor pages. What you need to do is:

1. Just Visit the website (Bankbazaar, Bajaj Finserv, etc.)
2. Add personal details along with contact details
3. Specify your PAN number

4. Get your free credit score
It is extremely important to keep track of your credit score, so in case, if it dips or any error has been made while calculating, you can instantly respond to it.

How to Minimize the Impact of COVID-19 on Credit Score?

During these tough times, everyone is surely worried about their businesses! From paying salaries to the staff to repaying the debts, situations are getting worse for the small business owners and entrepreneurs to handle and manage all at once.

One of the major worries that recurring these days is how to repay the borrowed amount. EMIs are surely getting delayed, and credit score is ultimately affecting the credit score. Although RBI has announced an extended 3 + 3 moratorium period for the loan repayments without affecting the credit score, interest rates are actually very high!

In this scenario, creditors are in dilemma about what to do and how to minimize the impact on
credit score to avail loan further easily. Therefore, to ease your worries, let’s take a look at the below-mentioned factors that will help you to minimize the impact of novel Coronavirus on credit score.

  • First of all, it is essential for you to talk to your lender if any assistance can possibly be provided. If you talk to your lender, then it will help you out in repaying the debts!
  •   It is essential to pay the minimum amount as you and your lender agree upon. You definitely cannot afford an impact on your credit report, right? So, pay the minimum amount or the amount that you can pay to not to have any impact on your credit reports.
  •  As the times are tough, so you have to be updated when it comes to credit reports! Nowadays, every business owner, be it small or large is somehow looking for credit to repay the debts and manage the cash flow within the organization. And, based upon the credit history, loan or credit is given to the borrower. So, stay updated on your credit report and history and try to maintain them!
  • You can even add a consumer statement in your credit reports to explain your circumstances. Make sure it should be brief and explain everything to the lenders!
How to Maintain your Credit Score in COVID times?


As we are all are struggling with COVID these days, so maintaining a healthy credit point is definitely important. Here are the smart tips for you to maintain your credit notes! Have a look below.

1. Debt Repayment
It should be your first priority to pay your debts. Yes, totally understood that in these difficult times, it is not easy to pay EMIs and debts, but pay the minimum amount as possible! Of course, RBI has announced the moratorium period for the borrowers to pay the debts.

However, interest rates are very high. After opting for the moratorium period, you can pay the debts with higher interest rates, and it also does not affect your CIBIL score too. Alternatively, you can opt to borrow a low-cost personal loan to repay the debts and credit card bills. The decision is totally yours, so choose wisely!

2. Avoid Cash Withdraw from Credit Card
There must be credit bills pending already in the list, right? So, don't even try to withdraw the cash from credit card, especially during such situations when the credit the score is already affected due to late bill payments and EMIs.

Of course, the cash withdrawal does not affect the credit score in any way, but you must also know the fact that there are high charges attached to it, which may lead to regular monthly payments.

In any case, you are not able to pay the amount, and it will definitely affect your credit score. Moreover, there is 3.5% of the advance fee levied on cash withdrawal from credit card along with finance charges. Hence, do not withdraw the cash from a credit card even if there’s an emergency.

3. Maintain a Balance
Do you know that credit lenders always prefer those borrowers who have a balance of credit mix? A balance credit mix includes both secured and unsecured loans, and it leads to a positive impact on the CIBIL score of the borrower.

It is essential to maintain this credit mix balance, especially for such times when the financial crisis is already hitting hard. If you have a high proportion of unsecured credit, you can go with the prepayment
of the existing unsecured loan. Or, maybe loan consolidation will help you out to maintain the credit mix balance.

4. Maintain CUR

Credit Utilization Ratio (CUR) is the limit of the credit utilization by the customers from
the total available credit limit. If you maintain your credit utilization ratio within 30%, then
most likely, you will be considered by the lenders. Also, maintaining the CUR is equally
beneficial in a high credit point. If you breach this ratio, then your credit points will lower
down. Therefore, do not exceed the credit utilization limit as it will only impact your CIBIL
score, and creating obstacles in processing loans.

5. Credit Report Evaluation

When was the last time you checked your credit report? It is absolutely essential for you to review your credit reports at regular intervals to understand where you made a mistake. Moreover, it is also important to check if the report is accurate, i.e. no other information is there in the credit report because it can adversely impact the credit score otherwise.

You can check your credit reports anytime, and in case of any discrepancy in the reports, you can take up the case with the credit bureau as well.


To sum it all up, COVID-19 has no doubt severely affected our lives, especially the biggest financial crisis all around the world. In such a scenario, everyone is searching for loan or credit options to repay the bills, debts, and so on. But without a good credit score, it is not possible. So, tracking and maintaining a high credit score is definitely crucial in such times.

Alternatively, you can contact the Financial Advisor in Delhi, Consult Avenue for the right assistance. The experts at Consult Avenue not only assist with financial solutions but also provide assistance on MSME registration, new company registration, and what not! Just one call away for all your queries and solutions.

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