Washington Set To Make Moves To Help Protect Credit Scores

U.S. Senators Brian Schatz (D-HI) and Sherrod Brown (D-OH), both members of the Senate Banking Committee, introduced new legislation to protect people’s credit scores during the coronavirus outbreak. As some families struggle with job losses or reduced incomes, they may fall behind in paying their bills. These late payments could hurt their credit for years and hold them back from accessing credit, taking out a mortgage, applying for a job, or renting an apartment long after the crisis is over.

“Our bill will make sure people who fall behind on their bills won’t take a hit to their credit scores,” said Senator Schatz. “Protecting credit scores now will give people a chance to rebuild their lives and our economy.”

“During these uncertain economic times, Americans shouldn’t have to worry about their credit scores as they work to make ends meet,” said Senator Brown. “This is an important fix to ensure Americans can focus on staying healthy and supporting themselves and their families, not worrying about accessing credit in the future.”

The Disaster Protection For Workers’ Credit Act will provide for an immediate four-month moratorium on all negative credit reporting and longer protections for people who face lasting financial hardship from the outbreak.  The bill will also provide free, unlimited credit reports and credit scores for a year from the end of the crisis. Beyond this crisis, the bill extends these protections to people impacted by future major disasters.

What Does This Mean?

This is good news for the average Jane/Joe that has been steadily improving their credit to make that purchase or prepping for that refinance. Although the precautions that have been put in place to fight off Coronavirus may have thrown a wrench in your plans, the Government is making moves to ensure that what ever you had to do to prepare yourself and your family for these unprecedented times is making it possible to do so without negative ramifications to your credit scores.

So when this global pandemic subsides, you can pick up where you left off.

We at American Freedom Funding are still working hard to make your mortgage goals a reality. We work virtually, remotely, and through the use of telecommunications, we are able to keep the level of customer service we are known for. When the light at the end of the tunnel starts to look a bit brighter, give us a call. We are eager to help and can’t wait to be able to help you start new chapters in your life.