Covid-19 Credit Reporting & Scoring Update

Research Brief

Concerns that deterioration in consumer reports and credit scores could unduly constrain access to credit and the nation’s broader economic recovery have continued to grow since we published our first research brief on this topic in May 2020. The issue is important not just for consumers in accessing credit, employment, and rental housing, but also for small businesses because lenders often consider owners’ personal information when underwriting commercial loans.

This Research Brief summarizes recent developments, including industry and regulator actions to reduce the risk of scoring declines and loan denials based on pandemic-related information, concerns about potential negative impacts on renters, and debates over how to report longer-term repayment plans. The brief also explains stakeholder calls for further action by Congress, regulators, and industry groups to bolster access to credit and pandemic recovery.

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About FinregLab

FinRegLab is an independent, nonprofit organization that conducts research and experiments with new technologies and data to drive the financial sector toward a responsible and inclusive marketplace. The organization also facilitates discourse across the financial ecosystem to inform public policy and market practices. To receive periodic updates on the latest research, subscribe to FRL’s newsletter and visit Follow FinRegLab on LinkedIn and Twitter (X). | 1701 K Street Northwest, Suite 1150, Washington, DC 20006