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Credit scores to be protected during coronavirus pandemic, agencies confirm

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  • 31/03/2020
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Credit scores to be protected during coronavirus pandemic, agencies confirm
Consumer credit scores will be not be impacted by taking payment holidays on mortgages and other forms of borrowing during the coronavirus outbreak, three major agencies have said.

 

 

Experian, Equifax and TransUnion have agreed to an ‘emergency payment freeze’, which will protect those who take a break from repayments.

It means any breaks or credit arrangements agreed with lenders as a result of the coronavirus will not be recorded on credit reports or scores.

The holidays are an agreement between the lender and borrower to pause repayments.

It comes after the government announced that homeowners impacted by the pandemic can ask their mortgage lender for a payment holiday of three months.

Other arrangements with credit lenders, including reduced payments, paused payments or increased credit limits will also be protected by the freeze.

Jonathan Westley, chief data officer at Experian, said: “These are challenging times. While everyone is rightly focused on staying safe and healthy, we know that many people are also concerned about the impact on their income.

“If you’re worried about meeting regular payments because of the pandemic, it is crucial that you speak to your lenders and other providers as soon as possible so they can help.

“Many lenders are offering payment holidays or other arrangements to help people who have been affected by the outbreak. Through this new industry agreement, Experian, TransUnion and Equifax are helping protect people’s credit scores during these difficult and unprecedented times.”

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