Allen, T.X. – COVID-19 is killing our nation’s citizens and their credit scores. For most, especially those who do not monitor their credit reports, they are unaware of this danger. I have personal knowledge – let me shed some light for you.
As a small business operator and owner, I monitor my credit reports daily, with all three credit bureaus (Equifax, Experian, and TransUnion). Like many Americans, I rely on free credit services like CreditKarma; however, I elected many years ago to increase my security and peace of mind by purchasing monthly monitoring plans offered by all bureaus. My efforts have paid off.
Over the weekend, I received a credit alert from all three bureaus, as well as CreditKarma. The remark indicated that my auto loan lender placed a comment stating that my account was affected by a “natural disaster.” The statement had a massive and negative impact on my credit score, dropping all scores by 54 points! I immediately informed my wife of this and promised to call my auto lender on Monday morning.
Here was the result.
According to my lender, the remark added was per by the guidance of the federal government. Also, per the guidelines, no adverse credit reporting would result. I assured the lender that my score dropped drastically, and demanded the remark removed. My lender complied and assured me that remark would be removed promptly.
So, what’s the scoop here?
Due to COVID, many Americans have lost their jobs, and in turn, their incomes and livelihoods. As a result, millions across the nation will find themselves defaulting on mortgages, auto loans, credit cards, and student loans. However, for those who continue to meet their monthly payments, beware, your lenders could be falsely commenting on your credit report. As a nation, we are all affected by this “natural disaster.” But that doesn’t give the right of our lenders to kill our creditworthiness.
Have more questions, visit Equifax.