PHOENIX (3TV/CBS 5) - If you’re having trouble making ends meet during the pandemic, your credit score may be dropping. That can be a road block for getting a mortgage.
But some new announcements on Tuesday may make it easier to make sure your credit score is on track for success. The Federal Trade Commission just announced that the three credit bureaus are allowing people to check their credit scores every week for free.
“I think it’s always helpful to be aware of where you are in your credit so that you can repair or correct any of those issues that may have occurred,” said Dan Morse, area manager for Waterstone Mortgage.
With low-interest rates on home loans, it could be a good time to jump into the market. But if you’ve been laid off or furloughed, and gotten behind on payments, your credit score could be tanking. All you have to do to stay on top of it is go to AnnualCreditReport.com and use Equifax, Experian, or Transunion for your free credit check each week.
Morse says while some people have come in with lower credit scores lately, it’s not as bad as you would think.
“Most industries are really looking at this with an eye to try to help people through this and to help them keep their credit intact as much as possible by labeling it as a disaster or this one-time event,” he said.
Normally going into forbearance -- or pausing or reducing your loan payments – hurts your credit score. But the Feds announced some eased restrictions in that area, too.
“If you were in forbearance and didn’t actually miss a payment, you can continue to purchase a home or refinance, and there’s no penalty for that,” Morse said.
Morse says there are still plenty of buyers in the housing market right now. As long as you’re not looking to do a quick flip, the future can still be bright despite the pandemic.
“Even if we go through a dip in the housing cycle which, again – not anticipating that – but if we did, the long term measures are going to far outweigh any negatives that would occur,” he said.