If you’ve decided to take advantage of federal loan deferral under the CARES Act during the COVID-19 crisis, be sure to check your credit score to ensure that delayed payments have not been adversely recorded on your credit history. While loan servicers have been directed not to report these events for federal loans, initial indications show otherwise, as many borrowers have noticed significant drops in their scores. And the same does not apply to private loans, mortgage/rent payments, or credit card debt, all of whose servicers will continue to report negative credit events.
Your credit is essential to your financial success, so always be on alert! Like your reputation, it’s hugely important and very difficult to rebuild once it has been tarnished.