Preserving Your Credit after a Natural Disaster

NOV 08, 2013

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Recovering from a natural disaster is never easy whether your car is caught in flood waters or youre a pipe bursts in freezing temperatures. While youre repairing property damages, its important to also take steps to mitigate potential damage to your credit.

If you had to leave your home, and left vital documents behind, theres a risk your information may be exposed to identity theft. As soon as possible, secure documents and check your credit report. If you find suspicious activity on your credit report, understand the key steps to take next to recover quickly.

Rebuilding can be a costly endeavor, especially if your property suffered major damage. Hopefully, your property was adequately insured and the insurance money will help you recover from your losses. Insurance payouts may happen quickly, but can often take a while.

Until the insurance money arrives, youll need to pay for certain essentials on your own. Try to avoid putting these necessary purchases on credit especially if the disaster also has hindered your ability to work. The last thing you want to do is add debt to your worries. This is a reasonable time to dip into your emergency fund to help carry you over.

It may be difficult to do, but try to be patient. Keep in mind you accumulated the things you lost over a period of years. Its probably not practical to think you can replace or repair it all right away. Try to limit immediate spending to only the things you absolutely need a new roof if it was blown off in a storm, a new car if yours was totaled in a flood, moving expenses if your home is not salvageable.

By keeping an eye on your credit and taking identity protection measures, you can help ensure youll have one less thing to worry about while youre recovering from a natural disaster.


This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

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