Anna Maria Andriotis is one of the reporters at The Wall Street Journal. She reports in the card division for American Express, MasterCard, Visa and Discover, and banks. She also presents reports on consumer credit paying attention to issues affecting borrowers in the U.S. She is a competent and determined reporter for credit scores and consumers’ credit reports, particularly private student loans and auto loans. The reporter has more than seven years of experience as a journalist having worked in the field since 2014 (Andriotis, 2020). This paper explores Andriotis and her article explaining that American’s credit score has improved despite the negative impact of coronavirus pandemic.
Since the year 2005, when the FICO started tracking the credit score, July 2020 recorded the highest level of creditworthiness. Andriotis (2020) explains that this has been happening despite the extensive negative effects of the Coronavirus on the economy. The rise was contributed by the unprecedented financial support to shield consumers against the harsh effect of the pandemic. The expanded unemployment and stimulus payments enabled many borrows to continue servicing their loans (Willis, 2008). Paying up students, mortgages, and auto loans facilitated the circulation of funds, improving its availability to new lenders.
Most of the measures taken to limit the spread of Coronavirus have a negative implication for the economy. However, movement restriction has reduced individual spending and only focus on their basic needs. Working from home has enabled many people to save money on transport and time, making it possible to make savings (Andriotis, 2020). Moreover, the pandemic uncertainties have encouraged many people to increase their savings to handle health issues that can arise. These issues and the rising cost of health insurance have influenced people to avoid impulse buying and focus on saving the balance after loan payment and clearing of their regular debt.
Many citizens use the unemployment benefits to manage their debt and the stimulus checks to enhance their credit scores. Most people are utilizing a small portion of the credit limits because they have reduced their spending, including on food and transport. Subsidies on mortgages and student loan repayment have seen many Americans free up some cash boosting the credit scores (Lusardi & Mitchell, 2014). The situation has favored lending institutions since they have continued experiencing a conducive environment despite the economic issues created by the pandemic.
Vaccination against the coronavirus is ongoing, implying that enhanced unemployment benefits and stimulus checks will be withdrawn gradually. Accommodation from lenders will also be eliminated as the rate of infections and severity of the COVID-19 reduces. Consumers can take various steps to lower their financial burden when the support is eliminated, including asking for an extension of the mortgage (Clark et al., 2017). This would enable them to pay a reduced amount per month for an extended period. It would be necessary to contact their lenders within the forbearance period to avoid affecting the credit score, particularly in case they cannot meet the existing repayment terms.
Andriotis has done a research explaining the government response in supporting Americans in this difficult period of the COVID-19 pandemic. She has explored how unprecedented financial support helped the American to continue managing their debts and servicing their loans. Expanding the unemployment benefits and promoting stimulus checks are some of the measures taken to shield Americans against harsh situations. Her work has made it possible to understand that the credit score has risen to its highest during the pandemic and most Americans can pay their debts and keep up with their loans. This shows that she is a great reporter who is determined to explain issues affecting the Americas.
Andriotis, A. M. (2020). Coronavirus tanked the economy. Then credit scores went up. The Wall Street Journal. Web.
Clark, K., Rosato D., & Mangla, I (2017). 07 steps to total financial fitness. CFA Institute. Web.
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44. Web.
Willis, L. E. (2008). Against financial-literacy education. Iowa Law Review, 94(1), 197-285. Web.