{"id":13933,"date":"2020-04-30T15:25:58","date_gmt":"2020-04-30T21:25:58","guid":{"rendered":"https:\/\/www.lexingtonlaw.com\/blog\/?p=13933"},"modified":"2022-06-01T17:11:13","modified_gmt":"2022-06-01T23:11:13","slug":"pandemic-unemployment-assistance","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/life-events\/pandemic-unemployment-assistance.html","title":{"rendered":"What Is Pandemic Unemployment Assistance and How Does It Affect You?"},"content":{"rendered":"\n
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Pandemic Unemployment Assistance (PUA) gives each state the ability to provide unemployment insurance benefits to individuals who are not normally covered by unemployment insurance.<\/h2>\n<\/div>\n\n\n\n

Pandemic Unemployment Assistance (PUA) gives each state the ability to provide unemployment insurance benefits to individuals who are not normally covered by unemployment insurance<\/a>, like freelancers and gig workers.<\/p>\n\n\n\n

PUA is part of the federal Coronavirus Aid, Relief and Economic Security (CARES) Act<\/a> that provides financial and other aid to Americans affected by the COVID-19 pandemic<\/a>. However, since unemployment insurance is a state-run program, state governments still determine the application process, the amount paid out and other factors. Stay up to date on your state\u2019s PUA program by visiting your state\u2019s unemployment insurance benefits office website<\/a>.<\/p>\n\n\n\n

Below, we\u2019ll explain how unemployment affects your credit, important information on PUA provided by the CARES Act and how PUA may differ between states.<\/p>\n\n\n\n

How Unemployment Affects Your Credit<\/h2>\n\n\n\n

Losing your job and filing for unemployment have no direct impact<\/a> on your credit score and do not appear on your credit report. However, the effect that unemployment has on your finances may indirectly impact your credit.<\/p>\n\n\n\n

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For example, you might need to put expenses on a credit card while you are unemployed. The resulting increased credit utilization<\/a> can knock down your credit score. Your credit score can drop more if you miss a payment as a result of your lost income. However, unemployment insurance can help unemployed workers avoid these issues.<\/p>\n\n\n\n

How Pandemic Unemployment Assistance (PUA) Works<\/h2>\n\n\n\n

The CARES Act was signed into law on March 27, 2020. The benefits of the PUA program are available retroactively if the time of unemployment occurred on or after January 27, 2020. PUA will end on December 31, 2020<\/a>.<\/p>\n\n\n\n

These are the main benefits provided by Pandemic Unemployment Assistance (PUA)<\/a>:<\/p>\n\n\n\n