Payment holiday warning: Credit scores to

As Akansha Nath, the Head of Partnerships at Credit Karma, detailed: “The extension of the payment holiday scheme comes as a lifeline for those who have been hit hardest financially by the pandemic, and with lockdown looming large in the UK again we’re likely to see even more people in need of this support to keep on top of monthly bills.

“For those who have already arranged a payment holiday, or those in the process of agreeing a break with their lender, it’s important to think ahead and be prepared when payment holidays eventually come to an end.

“While credit scores have been protected by credit reporting agencies through payment holidays, borrowers that still can’t meet repayments as the scheme finishes, may see their credit scores take a hit.

“At Credit Karma we’ve already seen this starting to happen: our members with the lowest credit scores before the pandemic have seen their ratings decline further over lockdown and we expect scores to suffer further as lockdown resurfaces, and fall off a cliff edge when these government support schemes wrap up.

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