managing your credit cards and protecting your credit score during the COVID-19 Pandemic
COVID-19 Credit Card Relief What to Know
Bank of America, American Express and virtually every other credit card issuer is offering a relief program to customers who have been financially impacted by the covid-19, contact lender.
Mortgage, credit card bills, utility bills, or personal loans
As the COVID-19 pandemic results in job losses and financial hardship for millions of Americans, many credit card issuers are offering temporary relief, including waived late fees and minimum payment requirements for a couple of months.
The Consumer Financial Protection Bureau is giving banks and other lenders a break on reporting mortgage and credit card data as they respond to the new coronavirus pandemic. The first thing you should do is talk to your credit provider.
To get certain assistance, you’ll need to contact your issuer. In many cases, that means calling customer service and staying on hold for a long time. But many major issuers now allow you to apply for relief online, rather than calling, which is much faster — although you might still need to wait a week or longer for your issuer to respond to submitted requests.
Whether it’s your credit card company or your mortgage, most major lenders have put out statements on how they’re helping customers who have been laid off, furloughed, or had their hours cut. Some companies allow you to defer payments, while others will let you pay partially for the foreseeable future.
Once you are able to explain your specific financial situation, you may be able to get a financial hardship plan tailored to your needs. Make sure to get this plan in writing, whether it’s notes taken on a phone call, emails or screenshots. Take down the name of the person you spoke to and when the call happened.
The CARES Act Makes a Few Credit-Related Changes
HOW THE CARES ACT AFFECTS CREDIT REPORTING
The Coronavirus Aid, Relief, and Economic Security Act signed into law last month gives consumers some credit protections. It dictates how companies that send data to the credit bureaus will report accounts for which consumers have payment accommodations in place.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act amends the Fair Credit Reporting Act (FCRA), the main federal law that governs credit reporting, and the changes last until 120 days after the national state of emergency ends.
How does the CARES Act change credit reporting?
Signed into the law on March 27, the CARES Act offers some credit protections to consumers who are facing financial hardship because of COVID-19. The new law temporarily amends part of the Fair Credit Reporting Act and allows some slack to be given to people who cannot pay their bills in the same way.
The CARES Act includes specific provisions to protect those experiencing coronavirus-related financial stress from seeing any negative impact to their score.
This means that if you are approved for a COVID-19-related forbearance, delayed payment or other payment arrangement with your lender or loan servicer, they cannot report you as being delinquent and your credit score will not be impacted during the time period of your modified payment schedule.
How Long Will the CARES Act Offer Credit Protection?
The CARES Act legislation likely will remain in effect well into the summer and perhaps longer.
Deferred Payments for Coronavirus-Related Reasons Should Not Affect Your Credit
You Can Now Check Your Credit Report For Free Weekly.
consumers now have the ability to check their credit reports weekly for free through April 2021 via AnnualCreditReport.com. Previously, free reports were only available once every 12 months.
The increased access was a mutual decision between the U.S.’s three largest credit reporting agencies: TransUnion, Equifax and Experian, AnnualCreditReport.com.
Credit Card Reporting and FICO Scores: Less to Worry About During COVID-19
COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION SBA Disaster Loan Assistance (Link Below) Apply:
SBA Disaster Assistance in Response to the Coronavirus How to Survive & Prosper Through The Coming Economic Disaster (FREE EBOOK) Click Here…
Coronavirus (COVID-19): Small Business Guidance & Loan Resources
Funding Options In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the COVID-19 outbreak.
Mortgage lenders demand higher credit scores as the coronavirus threatens the housing market
Protecting your finances during the Coronavirus Pandemic
The CFPB is committed to providing consumers with up-to-date information and resources to protect and manage their finances during this difficult time as the situation evolves.