Will Credit Companies Work With Me If I Lose My Job

Credit companies are notorious for fleeing jobless clients. They will stop working with you the moment you lose your source of income. Only a few companies will stick with you, but not for long. You may feel deceived, but the reality is credit companies are after your money and nothing else. The moment you lose your ability to contribute to their profit-making, your relationship ends there. 

What step should you take next? Is it possible to keep working with credit companies even after losing your money? Let’s see.

 

• Alternative income

It is not about your job, it is about money. If you can convince the credit company you can still make money, you will retain them. Most credit companies will stick with you for as long as you keep saving with them or do not default loans.

Having an alternative income apart from your job is a simple way to keep credit companies around. All you need to do is ensure the income is sufficient to repay any outstanding loans. Lack of alternative income will spell doom for you.

• Get another job

Losing a job may be heartbreaking. Although, that should not be the end of your financial road. Finding another job is another way to keep your credit company close. It may take time and cost money, but there’s always light at the end of the tunnel.

• Inquiries to credit report

You are likely going to look for several loans once you lose your job to sustain yourself. With every background check conducted, your credit score is adversely affected. To be on the safe side, avoid applying for loans. Minimizing new loan applications will leave your credit rating intact.

Many people who’ve just lost their jobs resort to raising funds for upkeep and bill payments. It is advisable to use your savings until another job comes knocking. If your savings dry out, find other sources of income. Go for loans as a last resort. Even as you make your applications, be smart.

For instance, if you receive one or two declines for an application, stop applying. Remember, lenders like Loan Advisor are quick to run to search for your credit ratings every time you apply for an instant cash loan.

What Credit Companies Look Out For

Never worry about losing a job unless it cripples your ability to pay bills. This is as far as credit companies are concerned. Why? You may wonder. Credit companies will not know you are jobless unless you tell them. But why would you do so? It is unnecessary.

Your credit partner will stay as long as you observe the following:

Payment history

Your history will come to your defense in times of unemployment distress. If your previous record is outstanding, expect your credit partner to hang on. The reverse is true. Expect the credit company to drop you as soon as they become aware of your job loss.

That is why it is advisable to maintain a good payment history when the cash keeps flowing in. As wise men say, make hay while the sun shines. When the ‘sun'(your job) goes down, your partner will stay with you.

Level of debt

Not even you would keep up with a liability. Credit companies will understand if your debt level is manageable. Unreasonable debts will only scare them away. Poor borrowing habits will increase your debt levels. If you lack financial discipline, you are likely to default on more loans. The more you delay your payments, the more you push your credit company away. 

What do you have to offer?

In the world of business, it is all about adding value. The more the value you add to an organization, the higher the likelihood they will keep working with you. The same case applies to credit companies.

But, how do you add value to such an organization? 

One way is through being their brand ambassador. Although for this, you should not wait until you lose your job. Being an ambassador should start the moment you join the company. A brand ambassador is a valuable asset organization treasure.

In fact, you are likely to enjoy special benefits as an ambassador even after losing your job. The credit company will always cherish you and treat you as their own. As a brand ambassador, your role is to spread the good news about the organization to your circle and even convert prospects into sales if possible.  

This does not mean you go hard on selling. Going the extra mile depends on you though you should not expect monetary appreciation from the credit company since you are not their employee.

Another benefit of being a brand ambassador is exposure to opportunities the credit company offers. It comes with more than one benefit. Other than being their client, you’ll also be treated as a partner.

Net Worth

Before ending any relationship between you and your lender, the credit company will consider your net worth. Losing your job may not be a big deal if you have other properties like land, cars, and businesses. Your land titles, logbooks, and business certificates will shield you from any embarrassments.

If you have an existing loan, keep paying your loan to maintain your relationship. The moment you start showing signs of delay or default, you will only make things worse. Try as much as possible to keep your new status of unemployment a secret. That way, your credit partner will not be urged to overreact.

The Bottom Line

Some things are better kept as secrets. For instance, losing your job should be your secret together with your ex-boss. Credit companies will only find out if you choose to tell them yourself. Well, the most important thing to keep in mind is credit companies will stick around as long as they make money from you. If you have property and alternative incomes, they will stick around. Maintain your credit record as high as possible, and these lenders will always be by your side.