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Credit Repair During the COVID Crisis

Credit repair during the COVID crisis, while more difficult in certain aspects, has provided opportunity for those who are looking to restore their credit.

Positive changes during 2020:

  • AnnualCreditReport.com is providing free credit reports WEEKLY through the end of April 2021 as required by the CARES act.
  • Collection companies have been more willing to wheel and deal on fear the next administration will hamper their ability to collect as easily.
  • Those who have remained employed AND received a stimulus check have more available income, and could work on paying off debt faster.
  • Less spending for those who are disciplined.

Negative changes during 2020:

  • Slower response time allowed by law due to provisions in the CARES act.
  • Higher unemployment and less income.
  • Overall stress during the COVID-19 pandemic.

Anecdotally, it appears companies are much slower to respond to CFPB complaints, but most are reporting back that they are achieving similar results as pre-pandemic. Most credit rebuilders are hoping that in 2021 the new administration and congress will work together to make things easier for consumers who will no doubt need assistance.

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