Credit scores are important for many reasons, not just to buy a home...
With these uncertain times it is becoming more and more common for people to have a sudden loss of income. Many people are turning to credit cards and this comes with the added cost people aren’t aware of.
“The federal Consumer Financial Protection Bureau (CFPB) recently issued general advice on how to protect your credit score during the current health crisis when you might find yourself charging more on your credit cards due to lost income.”
Credit scores are important for many reasons; they are what determines a lot of choices in your life. It can determine whether you get to rent or buy the home you want, get the car or truck you need for your family, and in some cases applications for jobs.
If you are unfamiliar with credit scores and the roles they play, go to CFPB and look up “resources” to start learning more.
If you are a current homeowner and worried about the current health crisis effecting your credit score, there was a bill passed in March 2020 that may protect your credit score and provide some financial relief.
“According to the law, known as the CARES Act, if the company that services your mortgage agrees to suspend or reduce your monthly payment — and you make any reduced payment on time — they cannot report you to credit bureaus for late or missed payments through July 25, 2020, or 120 days after the President declares the emergency period concerning COVID-19 is over, whichever is later. Learn more about mortgage assistance for homeowners.”
There are many apps out there you can download to keep track of your credit score. Do your research and make sure your app you are using is credible and doesn’t ding your credit score every time you check it.