If you’re worried about your credit, or what to do once your debt relief program runs out, you’re not alone.If you’re worried about your credit, or what to do once your debt relief program runs out, you’re not alone.

At the start of the pandemic, the lending community did its best to act as the borrower’s best friend in the short-term. Many lenders and creditors have “hardship” or “relief programs” that allow you to enter an agreement to:

• Defer or pause one or more payments
• Make a partial payment
• Forbear (temporarily stop paying) any delinquent amounts
• Modify a loan or contract
• Suspend federal student loan payments
• Receive other assistance or relief.

If you haven’t reached out to your lender about their available programs, it’s not too late! Make sure to ask questions about the terms of the accommodations, including how it will be reported to credit reporting agencies. Also, find out what’s required of you once the relief or agreement period has ended, like repaying the amount you missed at the end of your loan. 

Will your credit still drop? It depends on its current state before you receive accommodations. If it was in a current state beforehand, then the CARES Act requires lenders to continue reporting it as current. But don’t feel safe in your agreement until your lender confirms it in writing! 

Since these debt accommodations are on a time limit, you might be worried about what to do then. How will your debt and payments be reported, and will they be reported fairly? AFEUSA members don’t have to worry because they have Credit Clinic. As an exclusive AFEUSA offer, Credit Clinic will get you a free credit report and waive the “First Work & Set Up” fee to go straight into the repair process.