Three of the mainstream credit reference agencies say that payment holidays taken as a result of coronavirus will not affect credit scores.

Experian, Equifax and TransUnion all say that this ‘emergency payment freeze’, as they call it, includes mortgage payment holidays

The payment freeze will not be recorded within the credit report at all, but the agencies warn that borrowers should ask individual lenders if going on a payment holiday will have an impact on future lending decisions because of differing lender policies.  It must also be noted that missing payments without an agreed holiday in place will affect credit scores.

Experian chief data officer Jonathan Westley says: “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.”