As inflation ravaged the United States of America in 2022, residents across the country relied more on welfare benefits such as the Supplemental Nutritional Assistance Program (SNAP) to cope with the increased cost of living.

The two primary causes for the rapid rise in inflation were the supply chain issues, which were a symptom of the lockdown measures in response to the COVID-19 pandemic, and the price of gas, which skyrocketed as a result of the sanctions imposed on Russia following its invasion of Ukraine.

The result of these macroeconomic forces meant that the average American citizen paid more for everyday items such as groceries and utilities like heat and electricity.

While several states took the initiative to offer their residents some form of financial support through either stimulus payments or tax rebates, the increased cost of living forced many others to take advantage of the welfare schemes offered by the state and the federal government.

What is the Supplemental Nutritional Assistance Program?

Formerly labeled Food Stamps, SNAP is a food assistance program designed to help eligible households meet their nutritional requirements by providing them with financial support through the use of an Electronic benefit transfer (EBT) card.

It is estimated that, in the state of California alone, over one million households receive SNAP benefits helping a little 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 as an application for SNAP Benefits isn't reported to any of the credit bureaus.

What about other welfare schemes?

In the United States, there are broadly six major welfare schemes. Apart from SNAP, the other major schemes are; Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Medicaid, housing assistance, and the Earned Income Tax Credit (EITC).

Much like SNAP applications to any one of the other aforementioned schemes will not affect your credit score as they are not reported to the credit bureaus.