Credit Score


We are certainly in unprecedented times and with businesses dropping like flies and the self-employed no longer able to make an income, it is a time which is also fraught with fear in a financial sense.

That being said, the UK government have implemented many plans to help those struggling with the financial effects that COVID-19 has brought upon us. With additional support from Universal Credit to lump-sum payments to help out businesses, Boris Johnson has without a doubt, stepped up to help the people.

One of the most useful schemes laid out in the UK is the coronavirus payment holiday, but many people are concerned that this will have a negative impact on their credit score and are, as a result put of taking advantage of this concept. In this article, we are going to take a closer look at what you can expect for your credit score when taking a payment holiday.

What Is A Coronavirus Payment Holiday?

In the most simple terms, a coronavirus payment holiday is exactly what you might expect - a 'holiday' from having to pay certain bills such as your mortgage. It is, however important to keep in mind that you may only take advantage of this scheme if you are up to date with your payments thus far.

A payment holiday as a result of coronavirus can also be taken on things such as the following:

Loans Credit cards Store cards Catalogues

Aside from being able to take a break from your repayments, there is also the option to reduce the payments to a more manageable amount whilst the pandemic continues. How Will The Coronavirus Payment Holiday Impact My Credit Score?

In normal circumstances, missing a payment on any of your financial accounts can wreak havoc with your credit score, so what does it mean for your score if you take a payment holiday during the coronavirus pandemic?

It has been advised by the FCA that if you agree to take a payment holiday that your lender should ensure that it does not have a negative impact on your credit rating. This is somewhat comforting but if you are still feeling unsure, there is more good news.

There are three major credit reference agencies in the UK and each of these have pledged to protect the credit scores of the nation during these uncertain times. The way this works is that an emergency payment freeze will be applied to your account, ultimately resulting in no impact being made to your score.

When your credit report is viewed after taking a payment holiday, you can be confident that it won't look any different. This is because the payment holiday has been agreed between yourself and your lender rather than being a missed payment.


In short, a payment holiday will have no effect on your credit score. The reason for this is two-fold. Firstly UK credit agencies have vowed that credit reports will remain unchanged as a result of the payment holidays but also because this is an agreed arrangement that makes it different from a missed payment.

If you do find yourself in hot water during the coronavirus pandemic, taking out a loan may be a viable option. You can easily find the right financial product for your needs by using a website such as NowLoan to compare offers and ensure you take out a loan you can afford.