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How Do I Protect My Credit During Natural Disasters? contents
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How Do I Protect My Credit During Natural Disasters?

Last Updated: August 28, 2024
4 min read
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Key Points:

  1. If you think you'll miss or submit late payments, call your creditor to discuss repayment options.

  2. Know how much money you have in your account versus how much needs to go out to help you stay ahead of your debts.

  3. Check your credit report regularly to help identify suspicious activity and help protect you from fraud.

The protection of your life, the lives of your loved ones, and your property are clearly the priority when a disaster strikes or a crisis occurs. But what can you do to protect your credit and personal finances during a natural disaster or other major event?

You'll want to stay vigilant and protect your credit after a crisis or natural disaster, as scams, fraud, and other threats may arise. You’ll also want to make sure that the stress of managing expenses during a crisis doesn’t lead to decisions that could negatively affect your credit score.

Consider a few of these tips to help protect your credit and other financial information.

Communicate with your lender

If you’re overwhelmed, it’s possible that some of your bills could slip through the cracks. But paying late or missing a payment can negatively impact your credit score. It’s important to keep paying at least your minimum payment to your credit card company.

Fortunately, your credit card company or lender may be able to help. For example, Discover may have payment assistance programs available to help customers during hard times if they reach out for assistance.

In other words, keep your creditors in the loop if you’re feeling the effects of a disaster or other hardship (like the mass layoffs in the 2020 coronavirus pandemic). Discuss your options sooner rather than later to keep up with your payments. And make sure they have a current phone number and email address for you on file so they can get in touch with you easily.

Revisit your budget and track your spending

Natural disasters or something like a pandemic could hurt your budget if you’re not able to return to work right away. You may also be in a situation where you’re waiting for unemployment benefits.

You also could run into trouble if you’re footing the bill for evacuation costs, home repairs, or basic living expenses that insurance doesn’t cover (or while you’re waiting on insurance reimbursement).

In these instances, an emergency fund may only go so far. A credit card or loan could help cover the gap, but be careful not to end up overextended on credit, as it could impact your credit score.

Approximately 30% of your credit score is based on your amounts owed—which includes credit utilization (the percentage of available credit you’re using). The higher this number climbs, the more it could hurt your credit score.

Revising your budget and keeping track of what you spend may help protect your credit after a natural disaster. You can also set up credit card alerts to maintain awareness of your spending and balances.

Credit card alerts also can be helpful for protecting your score in another way: They might clue you into potential scams and/or identity fraud after a disaster if you see unauthorized activity on your account. 

Did you know?

If you’re seeking a new credit card to help cover the cost of repairs or living expenses, be sure to find the best credit card that works for your financial situation. You can easily compare Discover credit cards to other industry-leading cards to find the right rewards program and eligibility criteria for you.

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Check your credit report regularly

It’s generally a good idea to check your credit report often. Free credit reports are available to you weekly, as dictated by federal law. You can learn more at AnnualCreditReport.com. You’ll want to pay attention if someone pulls your credit or opens a new account.

In addition to checking your credit report, keep an eye on your score as well. Use your credit card’s free credit score access (like Discover’s Credit Scorecard) if it’s offered. And check your card for other security features that can help you protect your credit after a natural disaster.

Discover, for instance, offers the Freeze it® feature on their credit card products, which allows you to freeze your account in seconds with an on/off switch either on the mobile app or website to prevent new purchases, cash advances, and balance transfers.1 We also offer 1 bureau credit monitoring for New Account and New Inquiry alerts.2

Recovering from a natural disaster can take days, weeks, months, or sometimes even years. In the meantime, taking action to avoid damage to your credit can help make your journey back to normalcy a smoother one.

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  1. Freeze it®: When you freeze your account, Discover will not authorize new purchases, cash advances or balance transfers (including checks). However, some activity will continue including charges from merchants where your card is stored or billed regularly, as well as returns, credits, dispute adjustments, delayed authorizations (such as some transit purchases), payments, Discover protection product fees, other account fees, interest, rewards redemptions and certain other exempted transactions.

  2. Discover® Identity Alerts (Alerts) are offered by Discover Bank at no cost, are available only online, and do not impact your credit score. The Alerts currently provide: (a) daily monitoring of your Experian® credit report and an alert when a new inquiry or account is listed on your report; (b) daily monitoring of thousands of Dark Web sites known for revealing personal information and an alert if your Social Security Number is found on such a website. Alerts are only provided to Primary cardmembers who agree to receive them online and whose accounts are open, in good standing, have a Social Security Number, and an email address on file. This benefit may change or end in the future. Discover Bank is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. To see a list of Frequently Asked Questions, visit discover.com/freealerts.

  • Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.