The Federal Reserve said it plans to send out an estimated $32 billion in stimulus checks this summer. But while these payments will be helpful to the millions of Americans who receive them, they won’t directly improve your credit score.
The government is sending out stimulus checks to people who earn less than $75,000 a year. So if you’re one of these people, check your mailbox! If you don’t have a bank account and live in the U.S., then you likely qualify for one of these checks. They are issued by the Department of Treasury and are issued as a one-time payment to help pay off debt or cover expenses related to unemployment or other hardships caused by the financial crisis. The amount varies depending on how much income someone earns per year:
- For people who make up to $30,000 annually (as a household), they can expect between $300-$600
- For households earning between $30,000-$50,000 annually (combined), they can expect a stimulus check of about half that amount at most; for example around $200-$400
Stimulus Check Can Upscale Your Credits
The maximum amount of stimulus check available per household is set at $600 because there is no limit on how much each person could receive from this program–as long as they meet all requirements such as being over 18 years old with valid identification documents required by law in order to receive such funds such as driver’s license proof)
It’s not common for the average person to get a mortgage, but if you do and that mortgage needs to be refinanced, having a lower credit score could mean higher interest rates and more money in closing costs.
A poor credit score can also make it harder for you to rent an apartment or buy a car. Even if you don’t plan on buying a house anytime soon, it’s important to keep your credit healthy so that when your situation changes and it’s time to apply for loans or mortgages, there aren’t any unexpected hurdles standing between you and getting approved.
Your credit score is a three-digit number that tells lenders how likely you are to repay your debts. The higher the number, the better. A good credit score can help you get a loan or a loan rate that’s lower than if you had a bad one. It can also make it easier to rent an apartment and find work, and even buy things like cars or furniture on time.
