Your credit may be important for other big life decisions, too.
These reports are used by credit scoring companies and lenders to determine your credit scores, which is a number that may be used by lenders (along with your reports and other factors, like your debt-to-income ratio) to determine whether they should lend money to you, and at what cost. Wells Fargo, for one, went as far as providing blanket forbearance some customers saw their loans marked as negatively impacted by Covid-19 and their credit scores drop even though they didn’t request the forbearance and continued making payments.Ĭredit reports are the official record of your credit history and include a detailed look at loan balances, credit utilization and payment history.
#Chase dispute charge how to#
These lapsed payments were to be treated simply as payment suspensions-or, in some cases, still count as payments, such as under the PSLF program with federal student loans.Īlthough the federal government created these new guidelines to protect consumers from negative credit implications during the pandemic, some servicers were slow to implement new processes for how to properly report the suspended payments. Under the act, consumers were given the option of not making payments on their loans without suffering any credit-related consequences, like late payments and delinquencies (both of which can decrease your credit scores by dozens of points). The CARES Act, passed in March 2020, gave legal protection to consumers by providing loan forbearance periods on federal student loans and federally-backed mortgages. Pandemic Forbearance Periods Caused Credit Report Headaches The CFPB’s annual consumer response report reveals that credit report inaccuracies more than doubled during the pandemic, signaling dissonance between the laws that were introduced to help consumers during the pandemic, and how servicers reported suspended payments to the credit bureaus.Īnd it sometimes left consumers to deal with the consequences on their own. And during this global crisis, many consumers faced the added stress of dealing with financial services companies that didn’t always follow the rules or were slow to move when the federal government suspended certain loan payments during the pandemic. The coronavirus pandemic has been a mental and physical drain for Americans.
0 kommentar(er)
