ainflation took a toll United States of America In 2022, residents across the country relied more on welfare benefits like the Supplemental Nutrition Assistance Program (SNAP) to help them cope with the rising cost of living.
The two main reasons for the rapid increase in inflation were supply chain problems, a symptom of lockdown measures in response to the COVID-19 pandemic, and gas prices, which rose sharply as a result of sanctions against Russia. After invading Ukraine.
The result of these macroeconomic forces meant that the average American citizen paid more for everyday things like groceries and utilities like heat and electricity.
While several states took the initiative to offer financial assistance to their residents either through stimulus payments or tax rebates, the rising cost of living forced many others to take advantage of welfare schemes offered by the state and federal government.
What is the Supplemental Nutrition Assistance Program?
Formerly labeled Food Stamps, SNAP is a food assistance program designed to help eligible households meet their nutritional needs by providing them with financial assistance using an Electronic Benefit Transfer (EBT) card.
It is estimated that more than one million households in the state of California alone receive SNAP benefits, helping just over 3.5 million individuals meet their basic nutritional needs.
Does applying for SNAP affect your credit score?
Fortunately, relying on SNAP benefits does not affect your credit score because an application for SNAP benefits is not reported to any of the credit bureaus.
What about other social schemes?
There are a total of six major welfare schemes in the United States. Apart from SNAP, other major schemes are: Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Medicaid, housing assistance, and the Earned Income Tax Credit (EITC).
Like any of the other schemes mentioned above, SNAP applications will not affect your credit score because they are not reported to the credit bureaus.