What federal workers going without pay can do to protect their credit score

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The loss of income has all federal workers facing financial uncertainty(File: Rmcarvalho / iStock / Getty Images Plus)

The federal workforce has now missed two paychecks due to the government shutdown. Intuit Credit Karma says many are facing financial uncertainty, but there are things they can do to help protect their credit scores.

The backstory:

Around 670,000 federal employees have been furloughed and are not being paid and another approximately 730,000 federal employees who are deemed essential employees, including air traffic controllers, law enforcement, and TSA agents, are required to work but are not being paid. In addition, there are thousands of government contractors who are typically not paid during a shutdown.

Dig deeper:

The loss of income has all the workers facing financial uncertainty with impacts on their credit scores.

"The most important factor of your credit score is your payment history, so while missing a paycheck doesn’t directly affect your credit score, missing or delaying bill payments likely will," said Courtney Alev, consumer financial advocate at Intuit Credit Karma. "Even one missed payment can cause your score to drop, making an already stressful time even harder for many Americans."

Alev says those impacted need to be proactive and contact their banks and lenders to see what options may be available to help.  

"Banks and lenders often offer payment breaks or hardship plans, which can include lower minimum payments, reduced penalties, or temporarily paused payments. Don’t wait for them to reach out, or until you’ve already missed a payment: contact your credit card issuer or lender directly to explain your situation and see what assistance may be available," said Alev.

Financial institutions offering assistance

Several financial institutions have launched programs to assist workers impacted by the shutdown.

For members of Navy Federal Credit Union, PenFed Credit Union, and USAA, there are assistance programs available. Navy Federal Credit Union has a Paycheck Assistance Program and PenFed Credit Union has a Furlough Relief Assistance program.  USAA has no-interest loans and other assistance programs available.

Bank of America has established a special care line, 844-219-0691, for those impacted to call to request financial assistance tailored to your specific situation.

Chase has a special care line, 1-800-254-7713, for impacted customers to call and discuss their situation.  

TD Bank has a TD Cares program for its customers and BMO has programs available to help their customers.