Many consumers have questions about credit and debt during this uncertain time because of COVID-19. Here's a list of Frequently Asked Questions (FAQs) consumers had about their credit.
How will a payment holiday be reflected on my credit history?
A payment holiday can take on various forms. The data submission allows for two types of payment holidays, one is to defer the payment date, the other is to extend the terms of the agreement.
Will the payment holiday be recorded anywhere on my credit file and list my profile to have a specific status?
No, your profile as a whole will not be impacted. The payment holiday will only be applied to those accounts which are subject to payment holiday as agreed between you and the lender. All other accounts will reflect accordingly.
How will a payment holiday affect my credit score?
If you meet your revised obligations under the payment holiday, the payment holiday should not result in a build-up of missed payments on your credit report. The payment holiday will either enable you to pay back the loan over a longer period or will defer the instalment to a later date. In general, this should mean that your credit score won’t be damaged as your months in arrears should remain static until the time that the deferred amount becomes due and payable. Remember, while the payment status of your accounts is important, other factors are taken into account to calculate credit scores. These include total unsecured debt (e.g. credit cards and personal loan) and what your total use of your credit is (i.e. how much of your credit you are using).
Could the payment holiday impact my ability to get credit in the future?
Experian cannot guarantee that it will not impact your ability to get credit in the future; lending policies differ between the different financial service providers. You should discuss this with your lender directly. The intention of the payment holiday is, however, to allow the consumer’s profile to remain static during the period of the payment holiday.
I can’t get hold of my lender when I call; should I just cancel my debit or?
No. You should try to continue to make regular payments as best as you can until you have discussed your situation with your lender(s). We strongly discourage pausing payments without first agreeing on this with your lenders and providers. Unauthorised missed payments could affect your chances of getting credit in the future. Banks, lenders and other providers have been understandably busy trying to help their customers at this difficult time.
How do I dispute my credit information during the lockdown?
We have been certified as an essential service provider, and our Experian and Compuscan bureau data platforms remain functional during the lockdown. Therefore, all Experian and Compuscan dispute and customer service teams remain fully operational. As employee safety is our top priority, all our employees, including our Consumer Care Team, are working remotely.
We thus suggest following these steps first before calling one of our consumer care agents:
For your Compuscan data credit report:
For your Experian data credit report:
Will data providers still submit data during the lockdown? We are receiving data submission files to load onto consumers’ profiles as most data submissions are being done in an automated manner. Manual data submissions by non-essential service providers have declined, and in some instances, ceased. It is our intention to load this data as soon as we receive it after lockdown.