As the economy and work force change in response to the coronavirus (COVID-19) pandemic, we are working to provide updated guidance and information. Below, you’ll find answers to Frequently Asked Questions regarding the financial affects of the coronavirus as well as resources to prepare for the weeks ahead.
COVID-19 Financial FAQs
If you’re facing trouble in advance of your next mortgage payment, call your lender as soon as possible. Lenders offering assistance in response to the coronavirus include:
- JPMorgan Chase
- Wells Fargo
- Bank of America
- Fifth Third Bank
- Ally Financial
- TD Bank
- Ocean First
- PNC Bank
- Quicken Loans
With the release of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, there are new relief options for individuals specifically with federally backed mortgages. You’re eligible for protections if your mortgage is held or backed by one of these agencies:
Nearly 50-percent of all mortgages are backed by either Fannie Mae or Freddie Mac.
If you’re not sure if your mortgage is federally backed, the first step is to call your servicer. Click here to find out who owns or services your mortgage. Your servicer should be able to provide you the name, address, and telephone number of who owns your loan.
If you are living in federally subsidized housing or renting from an owner who has a federally-backed mortgage, the CARES Act protects you from being evicted through July 24, 2020.
Some states and local governments have also paused evictions to protect renters who may have been impacted by the coronavirus. Find out if you’re protected here.
If you’re facing trouble paying your rent, contact your landlord right away. Ask your housing authority, landlord, or management company if these protections apply to you.
When you’re unexpectedly out of work, it’s important to know that there are options available to maintain a source of income. The federal government has given states the authority to expand their unemployment benefits programs and offer new options in response to COVID-19.
Under the Pandemic Unemployment Assistance (PUA) program benefits were expanded to include the self-employed, gig workers, independent contractors, part-time workers, and those experiencing reduced hours (who do not normally qualify for traditional unemployment insurance).
For the most updated information and to easily find your state’s unemployment benefits program, visit CareerOneStop.
Use this calculator to estimate what your state’s unemployment benefits are:
The $2 trillion Coronavirus stimulus legislation, also known as the CARES Act, provides multiple relief options in regards to federal student loans.
Federal student loan payments and interest are waved until September 30, 2020. These benefits will be automatically implemented.
The stimulus package does not address private student loans. Call your private lender to learn about your options if you’re facing a hardship that would prevent you from making your payments.
Learn more on the Federal Student Aid website.
The Federal Deposit Insurance Corporation (FDIC) BankFind tool allows you to locate FDIC-insured banking institutions in your area.
How Do I Choose the Right Account for Me?
Many people who do not currently have a bank account may find that a “checkless” checking account may be a good option for a first bank account. Find more information on how to choose a bank account.
Provide Your New Bank Account Information to the IRS
When you open an account, the bank will provide you with a routing number and an account number. You can submit that information through the IRS portal to receive your economic impact payment if you are eligible. You can find more information on the IRS’s website, including these Frequently Asked Questions.
Eligible individuals may receive up to $1,200 and eligible couples may receive up to $2,400 — plus $500 per child. The payments are based on income. You’ll get the full payment if:
- Your individual adjusted gross income is less than $75,000 .
- Your filing taxes jointly and your adjusted gross combined married income is less than $150,000.
Americans who make between $75,000 and $99,000 (or married couples making between $150,000 and $198,000) are eligible for a portion of the payment. The rebate amount is reduced by $5 for each $100 in income over $75,000 (or $150,000 for a married couple).
The money will be direct deposited into the bank account you have authorized the IRS to send your tax refund. Otherwise, it will be sent via mail.
Please visit IRS.gov/coronavirus for more information on your eligibility to receive a stimulus check.
The IRS is still processing tax returns but has announced a nationwide payment relief for individuals and businesses. The due date for individual and C Corporations income tax payments and filings was extended to July 15.
If you expect you’ll have a payment to make, start saving as soon as possible to meet the July 15 deadline.
Paycheck Protection Program (PPP)
This section of the CARES Act is designed to provide small businesses with support to continue to keep their workers on the payroll.
If your small business meets the program’s size standards you might be eligible. These businesses include:
- Small businesses and eligible nonprofit organizations
- Veterans organizations
- Tribal businesses described in the Small Business Act
- Individuals who are self-employed or independent contractors
There are other programs available as well. Learn more about:
Learn more about programs the top creditors are offering:
Bank of America
Visit their website to find options for deferring your home loan or credit card payments.
For information on credit cards, loans, and general banking support, find the appropriate customer service center on their contact us page.
Citi has temporarily put relief programs in place for those impacted by the coronavirus. Visit their website for help with credit card payments and call 1-855-839-6253 for mortgage payment assistance.
The FAQ page answers many questions on how to handle your Discover accounts.
If you’re in need of assistance, call 1-800-869-3557 to discuss options available for your consumer lending, small business, and deposit products.
*The information contained within this site is of a condensed and general informational nature only and can change from time to time. It should not, by itself, be relied upon in determining legal rights or other decisions. Visitors to this site are advised to verify any information they may wish to rely on. Credit.org makes no representations or warranties, whether expressed or implied, as to the accuracy or suitability of the information or materials contained within.
How to Skip or Defer Your Car Payment
You might be able to skip or defer your car payment if you’re having trouble paying your usual bills. The best way to approach this is by first calling your lender and asking what their policy is.
How to Write a Hardship Letter
If your’re facing financial hardship – whether it’s medical bills, a mortgage payment, credit card payments, or anything in between – communicating with your lenders is the first step. Learn how to write a hardship letter and use our free hardship letter example.
The news surrounding the coronavirus outbreak updates constantly. Consequently, it’s important to create a plan for both your household and your finances to ensure you’ll be ready for whatever challenges you might face.
Amid the ongoing concerns about Coronavirus (COVID-19), it’s important to know how to stay prepared and informed to ensure you and your family members’ safety.
As we continue to monitor the rapidly evolving situation around the coronavirus disease (COVID-19), we are making changes to our work environment to keep you and our employees safe.
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