Soon after the economic downturn, there was an amendment to the Fair Credit Reporting Act called the CARES Act. It required lenders to make accommodations for individuals who contacted them saying they had been adversely impacted by the COVID-19-related economic downturns.
Lenders would then make this accommodation and report to credit bureaus the tradeline as “current,” even in the event of missing or late payments. This is important because derogatory payment information can have an adverse impact to credit-based insurance scoring.
The CARES Act was also backdated to start on January 1, 2020, and its influence will continue for 120 days past the end of the pandemic. Since the “end” is currently unclear, this mitigating factor will be present for our industry for some time.
Overall, this is a large reason of why we’re seeing stability in our scores.