The pandemic led to many lenders offering payment holidays to their clients. If this is something you are considering, you should understand whether this decision would affect your credit score.

The pros and cons of payment holidays

The great thing about payment holidays is that it generally helps to keep your credit score in good shape. By extending repayment dates, it might mean less missed payments, and therefore a better score. The downside is that you will end up paying more interest in the long run, so you should consider all your options before making a decision.

Every lender is different – so you should check to see how they report the payment holiday and whether it’ll affect your score.

How to check your credit score

On ClearScore, we offer your credit score and report – for free, forever. We also notify you of any changes to your score and provide you with ways to improve.

Sign up or log in to ClearScore to check your score now.

Other ways to stay on top of your debt

1. Consolidate your debt

By combining your debt into a single loan repayment, it will be easier to manage and you may pay an overall lower interest rate.

Find a consolidation loan on ClearScore.

2. Get professional help

Have a debt counsellor assess your financial situation and put a repayment plan in place.

See if you qualify for debt counselling on ClearScore.

3. Complete our Coaching plan

Learn how to manage your debt with a free Coaching plan from ClearScore.

Browse our Coaching plans on ClearScore.