Covid payment holidays.

7
Posted 10th Apr
Is it likely that using the payment holidays on offer for cards and loans would have an impact on future credit applications , such as a mortgage?
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FCA 03 April 2020: Credit providers should "Ensure consumers using any of these temporary measures should not have their credit rating affected"
fca.org.uk/new…rus
They all seem to have different rules/arrangements but the general consensus seems to be that most are offering payment holidays or zero penalties/lower interest etc... for a while - and provided you stick to these agreed arrangements then your credit rating shouldn't be impacted.
Obviously the longer this goes on, the more chance of people falling foul of the rules, and therefore seeing their credit score being affected.
Edited by: "horsepills" 10th Apr
So this morning, my latest credit report was created, now I do not believe in credit scores, but individual circumstances and your actual credit history, but just to note, Strangely my credit score had dropped by a massive 100 points this month, this is on top of most cards and loans normally available to me now not being available, and all this despite my circumstances and repayments being exactly the same as the previous 12 months, nothing new on there at all, in fact there was the removal of 2 hard searches from April 2019 so my score should of technically increased.

Forgive me for being cynical but I think there has been some preemptive strikes here,

I also do not believe for one minute that on mortgage applications at least, these payment holidays will not be taken into account in the future.
Edited by: "MrSprkle" 10th Apr
MrSprkle10/04/2020 22:17

So this morning, my latest credit report was created, now I do not believe …So this morning, my latest credit report was created, now I do not believe in credit scores, but individual circumstances and your actual credit history, but just to note, Strangely my credit score had dropped by a massive 100 points this month, this is on top of most cards and loans normally available to me now not being available, and all this despite my circumstances and repayments being exactly the same as the previous 12 months, nothing new on there at all, in fact there was the removal of 2 hard searches from April 2019 so my score should of technically increased.Forgive me for being cynical but I think there has been some preemptive strikes here,I also do not believe for one minute that on mortgage applications at least, these payment holidays will not be taken into account in the future.


My score has dropped a bit (not by that much though) as I applied for a 0 % balance transfer card to shift a few debts I was paying in order to keep my score high to apply for a mortgage. I am self employed so am in a bit a a pickle as I have no idea when my income will pick up again . Cant deny the 3 month payment holidays would come in handy but would rather not if it's going to hinder my mortgage application.Then again i really can't see the end of this in 3 months either.
broadyo79610/04/2020 22:55

My score has dropped a bit (not by that much though) as I applied for a 0 …My score has dropped a bit (not by that much though) as I applied for a 0 % balance transfer card to shift a few debts I was paying in order to keep my score high to apply for a mortgage. I am self employed so am in a bit a a pickle as I have no idea when my income will pick up again . Cant deny the 3 month payment holidays would come in handy but would rather not if it's going to hinder my mortgage application.Then again i really can't see the end of this in 3 months either.


I agree to the end not being in sight, I think this is just the start of the problems for many, because the government wont furlough forever and the Banks are in it for the profit and after 3 months, they will have more debt and 40% overdrafts to recall.
Furlough for 3 months was a one off. Any longer then government will be taking money like Roosevelt did with gold. Or something similar. Someone will have to pay for this. A payment holiday is a short term fix while the powers at be see how the land lies and have a think. Jmo.. I'm dreading the flu season in October. At least it's summer which is a plus. We have time to plan but payment holiday is just that. Then what?
Edited by: "wayners" 11th Apr
From Which? website:



The FCA says lenders should ensure the temporary measures don’t impact credit reports and scores. Meanwhile, the UK’s three main Credit Reference Agencies (CRAs) have pledged to protect credit scores during the COVID-19 pandemic.



which.co.uk/new…re/
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