Three credit reference agencies - Experian, Equifax and TransUnion - have confirmed that consumer credit scores will be protected if people take payment holidays as a result of the Covid-19 pandemic.
Earlier this month the government announced that residential or buy-to-let borrowers impacted by the crisis can ask their mortgage lender for a payment holiday of up to three months.
To help people applying for payment holidays, the credit reference agencies are implementing an 'emergency payment freeze' which will ensure that an individual’s current credit score is protected for the duration of an agreed payment holiday.
Other special arrangements, including reduced payments, paused payments or increased credit limits, are also covered by the emergency payment freeze agreement. The agencies confirmed that an emergency payment freeze will not be recorded anywhere on a credit report and will not increase the level of any existing arrears.