Three major credit reference agencies have confirmed that consumer credit scores will be protected for people with agreed “payment holidays” in place as a result of the coronavirus pandemic.

Experian, Equifax and TransUnion are implementing a special measure called an “emergency payment freeze” which will ensure that an individual’s current credit score is protected for the duration of an agreed payment holiday.

Payment holidays, according to Experian, refer to a pause agreed between an individual and their lender on regular loan payments.

Chancellor, Rishi Sunak, announced in March that homeowners impacted by the Covid-19 crisis could begin asking their mortgage lender for a payment holiday of up to three months – for both residential and buy-to-let mortgage customers.

In addition to the Government’s guidance on mortgages, lenders may be able to make special arrangements across other forms of credit – which could include a payment holiday, reduced payments, paused payments or increased credit limits – and these are to also be covered by the three credit reference agencies’ emergency payment freeze agreement.

“These are challenging times,” Experian chief data officer, Jonathan Westley, commented. “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.”

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