All you need to know about the CARES Act and Credit Reporting

Updated: May 3, 2020

The CARES Act, which President Trump signed into law on March 27, 2020, Act amends the Fair Credit Reporting Act (FCRA) to stop adverse credit reporting during the COVID-19 crisis, but only under specific circumstances.





If you can't pay all your bills on time contact your lenders for help and ask about hardship options as soon as possible—ideally before you miss a payment. Lenders are putting policies in place to help customers who may need extra time to pay their bills such as temporarily lower your interest rate or payment amount, defer a payment, make an agreement to receive a partial payment or pause your payments for a period of time. Data reported to credit bureaus by your lender, as required by the Coronavirus Aid, Relief, and Economic Security (CARES), will not cause your credit scores to go down, which can help protect your credit history and credit scores. Your creditor or lender will make an agreement with you called "an accommodation". If an account is delinquent at the time of the request, your account will maintain that status during the agreement until the account is brought current. If credit is current and an agreement is made with the creditor, then the creditor will report to credit reporting bureaus that the account is current.

The CARES Act requirement applies only to agreements made between January 31, 2020 and the later of either: 120 days after March 27, 2020 or 120 days after the national emergency concerning COVID–19 ends.

The CARES Act also applies to certain federal student loans including suspending payments and credit reporting. However the CARES Act does not cover all student loans, Family Federal Education Loan Program loans (FFELP Loans). These student loans are backed by the federal government, but mostly were issued by private banks prior to 2010.

Please contact your student loan provider.

https://www.consumerfinance.gov/about-us/newsroom/cfpb-issues-credit-reporting-guidance-during-covid-19-pandemic/

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