Business

Stimulus Payments and Your Credit Score 

June 9, 2020

Many things in the world are uncertain right now. When will non-essential businesses be able to open? When will amusement parks start operating again? Will COVID-19 make a comeback with a second heavy hit? There are only guesses and predictions as answers to these questions, which makes many people uneasy.

You might also have your own uncertainties you’re dealing with. Will you have a job after the pandemic has calmed down? Are you going to receive stimulus payments while you’re in the midst of it? What will a stimulus check do to your credit score? Is there anything you can do to save your credit? There are some answers still unknown, but there are others with a clear answer.

Will I Have a Job After the Pandemic Has Calmed Down?

Source:theconversation.com

This is one of those uncertainties we mentioned above. If you have been furloughed, you should speak to your employer about his or her plan for getting employees back on the job. If you are struggling financially in the meantime, you may want to seek temporary employment elsewhere until the pandemic has calmed down enough for you to get back to work. Some industries and companies with current job openings include:

• Restaurants

• Delivery companies

• Grocery stores and bulk warehouses

• Online stores such as Amazon

• Cellphone companies

• Healthcare

If you lost your job completely, many of these companies and industries are also looking for permanent employees. Now would be a good time to apply and interview, so as to secure a position while there are so many other individuals staying home and unemployed until the pandemic is all over. You have bills to pay, so you might as well take advantage of the situation you’ve found yourself in.

Will I Receive Multiple Stimulus Payments?

Source:finance.yahoo.com

When talk began about sending out stimulus checks, there were various plans presented. One included sending multiple checks to each household. Another included monthly payments. Yet another included just one stimulus check. Though there were a lot of great plans presented, when President Trump authorized a stimulus, it included only a single payment to each household.

That one stimulus check could be a major help if you are financially struggling during this uncertain time. Each adult will receive $1,200, and any qualifying children under 16 years old will receive $500. The amount is based on your 2019 tax return, and if you haven’t filed, the IRS will look to your 2018 tax return. There are some exceptions to the rule, such as married couples filing jointly who make over $150,000 in AGI. The stimulus check amount gradually decreases as your income level increases, so you shouldn’t plan on the standard if your tax return has a high AGI.

If you have yet to receive your stimulus check, the IRS has a page dedicated to you. Chances are if you haven’t filed your taxes the last two years, that could be what’s holding it up. If you did file your taxes and had your return mailed to you instead of directly deposited, that could be holding it up. Fill in the information on the site so you can get your stimulus check as soon as possible.

You may be surprised to find out a debt collector could have dibs on your stimulus check. Though many debtors are forgiving and pausing debts right now, there are plenty still out there to collect on what they are owed. If you have been sent to collections, your stimulus check could go straight to a debt collector.

Source:finance-watch.org

Is Anyone Protected From Debt Collectors? The type of debt you have could protect you from debt collectors snatching up your stimulus check. The CARES Act protects against many state and federal debts, so if you’ve defaulted on a federal student loan, for example, your stimulus check will go straight into your pocket. That doesn’t mean you can’t use it to pay on your student loan, but if there is something else that will improve your credit score, you should maybe pay on that first.

Unfortunately, the CARES Act doesn’t protect against private debt collectors. This means private companies can try to seize your stimulus payment. Many states are fighting against these measures, so there is hope insight for those who are struggling to stay afloat in such defeating times. This doesn’t always make it any more comfortable when you have been searching for job openings and trying to keep yourself from debt collection, but those collectors keep coming.

How Can Americans Protect Their Stimulus Payments? Because stimulus payments are being sent in the same way you received your tax return last year, many checks are being direct deposited into bank accounts. This is where the problem lies, as any liens or holds from debt collectors are often satisfied straight from bank accounts. If you can intervene before your payment is sent, you can request a mailed check, cash it at the bank, and use it as you need it for food, rent, mortgage payments, utilities, and other necessities.

Will a Stimulus Check Hurt My Credit?

Source:forbes.com

The short answer? No. A stimulus check isn’t going to affect your credit score in any way. Your credit balances, payment history, age of credit accounts and new credits will impact your score, and receiving a stimulus payment isn’t any of those.

In a roundabout way, however, your stimulus check could help you begin to improve your credit. If you’re like many Americans, you’ve probably been struggling with your finances during this pandemic. Perhaps you’ve been sent to collections over your debts, have filed for bankruptcy or have been forced to file for unemployment. With a stimulus check in hand, you can pay off some of those debts, saving your credit.

What Can I Do for My Credit History?

Even with your stimulus payment, you could be struggling to pay off debt without a steady paycheck. Is there anything else you can do? The good news is, yes! Take a small amount of your stimulus check, go visit coasttradelines.com and then purchase an authorized user tradeline. This is a way for you to partner with someone who already has a stellar credit score. That individual’s credit history becomes your credit history, and you both benefit from it. Now you have the score that will allow you to achieve your financial goals when so many people are struggling.

Getting Started Purchasing Tradelines

source: medium.com

There’s a lot that’s up in the air right now, but there are also some certain things. Purchasing AU tradelines is one of those things that is sure to assist you in gaining financial stability during the COVID- 19 pandemic. Get started today by learning more about AU tradelines.

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