I can’t pay my credit card
The Financial Conduct Authority (FCA) has released new guidance so banks and lenders are able to give customers who are struggling a three month break from payments.
You should only take a three month break if you really need to. Interest will still be added so your payments afterwards will likely increase. If possible, making smaller payments is better, so you should do this if you can.
If you do need to apply for the payment break, contact your lender as soon as possible. Don’t cancel payments before speaking to the bank or lender. They are likely to be much busier than usual, so it may take a while to get a response.
If you were struggling with your finances before coronavirus, talk to your lender about this. Banks and lenders should consider other options for you, such as reducing or cancelling interest charges, or accepting smaller payments. Talk to them to find out what your options are.
You can find the application form for a payment holiday below. Click the name of the bank to go to their website. If your mortgage provider isn't listed, visit their website.
If I don’t pay my credit card, will it harm my credit score?
If you have an agreement with your lender, such as a repayment holiday, it won’t affect your credit score.
If you miss a payment without an agreement in place, it will be treated as a missed payment and could harm your score.
You can see if your payment holiday has been recorded by the lender by checking your free credit report. If it shows a missed payment, you can raise a dispute on your report to get it sorted. You should also double-check with your lender, to make sure it doesn’t happen again next month.
It’s best to check your report on a regular basis, as it may take a while to update.
If you make sure everything is as it should be now, it'll make it easier when things go back to normal. With a good credit score, you can get the credit you need when you need it, improve your financial footing, and move on up to a better future.