Preparing Your Credit for the Future

With all the COVID-19 information circulating in the media, it’s hard to focus on anything else. As we continue to navigate these uncertain times together, it’s important to remember that this too shall pass. That’s why this month, we want to share information to help you prepare your financial future for life after a pandemic. 




Credit is one subject that will always be important. No matter what your current financial situation is, you can use this information to become a credit master and strengthen your own score down the line. There is also a breakdown of the different scoring models to highlight habits that will help you achieve credit success. 

What Should I Do if My Income Is Stable?


  • DO keep right on working the Baby Steps like you have been.


  • DO pay your bills on time. This isn’t a free pass to skip out.


  • DO use your stimulus money to help you crush your goals—use it to speed up the Baby Step you’re on.


  • DO NOT pause your debt snowball!


  • DO NOT cash out your 401(k). You won’t even see the losses unless you take your money out of the

       market—so don’t!


  • DO NOT defer (aka delay) your student loan payments—keep attacking these with a vengeance.


  • DO NOT stop paying your mortgage.


What Should I Do if I Was Laid Off/Furloughed or if My Income Is NOT Stable? 


  • DO pause your debt snowball! You need all that extra money on hand right now.


  • DO make sure your Four Walls (food, utilities, shelter and transportation—in that order) are covered, then pile up cash as high as you can.


  • DO make the minimum payments on your debt (if you can swing it).


  • DO cut out all unnecessary spending from your budget (think need versus want).


  • DO look for a part-time job wherever you can find one!


  • DO use any stimulus money to cover your Four Walls and then toss anything leftover into your emergency fund.


  • DO NOT take out a payday loan! Run as far from these snakes as you can.


  • DO NOT get a HELOC (home equity line of credit)—it will only dig a deeper hole.


  • DO NOT stop paying your mortgage. Shelter is one of the Four Walls, so make sure it stays at the top of the list.


  • DO NOT cash out your 401(k) unless you’re facing foreclosure or bankruptcy.


Should I File for Unemployment?


  • DO check in with your state government to see if you qualify for unemployment benefits.


  • DO keep looking for work (even if you’re getting unemployment).


  • DO NOT file for unemployment if you can bring in at least 50% of your income by working another job (part time or full time).


Even though the world seems to be on pause right now, this situation will pass. When it does, you will be ready to view your credit with fresh eyes and come out stronger, no matter where you started. In the meantime, please know that I am here for you and your family during these challenging times. If there’s anything we can do to help, do not hesitate to call: (916) 801-1105. Stay healthy!

About our Team


The Sherri Patterson Team specializes in residential real estate and relocation, with a combined 75+ years of experience serving the Sacramento, El Dorado, Placer and Yolo counties. We work directly with hospitals, physicians and medical professionals. Whether you're looking to buy, sell or relocate to the Greater Sacramento area, we are the premier real estate team of choice. Our office is located at Keller Williams in Folsom, CA

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