Credit score warning: Millions could see borrowing costs rise by over £2,500 due to COVID

Credit score warning: Millions could see borrowing costs rise by over £2,500 due to COVID

“During this global crisis, we know millions of people may see their credit scores suffer through no real fault of their own, so we want to do what we can to help people understand what makes up the score and how it can be improved most quickly.

“Some elements contributing to credit score deterioration have come from a lack of proper understanding around things like payment holidays.

“For example, in April, Credit Karma research showed widespread confusion around mortgage, loan and credit card payment holidays, with some cancelling direct debits without speaking to their lender and others instead stretching themselves too thin financially because they falsely feared a payment holiday would cripple their credit score”

In recent months, the FCA and wider government have extended several payment holiday measures which concerned mortgages, credit card repayment and other lending agreements.

Published at Thu, 30 Jul 2020 23:01:00 +0000