Worrying the Covid-19 crisis will affect your credit score?

Q

I’VE been furloughed. How will this will affect my credit score?

A

YOUR income isn’t included on your credit report, so being furloughed won’t hit your credit reference agency score. However, lenders may check your income and spending when making decisions about new and existing credit, so if your income has dropped it could have an impact on the amount of a loan.

Q

MY INCOME has been reduced because of the pandemic and I can’t pay all my bills. If I cancel some of my direct debits for a few months will this hit my credit score?

A

UNAUTHORISED missed payments are bad news for credit scores, so don’t cancel any regular payments without first agreeing this with each lender or other service provider.

Q

I’VE agreed a payment holiday on my mortgage and wonder how this will appear on my credit report?

A

CREDIT reference agencies have agreed new emergency guidelines for lenders. They are designed to help protect your credit score when payment holidays are agreed due to the pandemic. The guidelines stipulate that the holiday isn’t marked on your report and, importantly, that your deferred payments will not cause your account to fall into arrears.

Q

IF I agree a lower payment on my credit card or reduced interest with lenders, would this affect my credit score?

A

AGREEING with your credit card provider to pause or reduce payments for a while should not result in arrears building up on your credit report, which will help protect your credit score.