![]() Keeping to your arrangement means your score won’t be impacted. If you are experiencing financial difficulty and are getting hardship support from your lender, we recommend that you keep to the arrangement, if you can. This means, if you make a hardship arrangement and you don’t keep up with that arrangement, it can impact on your score. These credit reporting bodies can use your repayment history information in how they calculate a score. However, this is not the complete picture. These credit reporting bodies are not allowed to use your hardship information in the calculation of their credit score. So how does hardship information impact on your credit score? That’s simple, it can’t. There are many other contributing factors but as you can see stability and predictability are key. Stability of occupation – how often have you change jobs?.Stability of residence – how often have you moved?.Stability of your credit repayments – are your payments on time?.The elements that make up your credit score are always kept discreet by organisations that calculate them however, they tend to revolve around a few basic themes: Individual elements of your file can add or subtract from that number, the higher the score the lower your perceived credit risk and the easier it is to get further credit. How does hardship information impact my credit score?Ī credit score is a generated number based on information that credit reporting bodies have access to. Way Forward is a registered charity that works with people who are in medium to long term financial difficulty. Keep in mind that a credit report and your credit score are two different things.Īnd if you’re having trouble with repaying debt and you’re worried how it might look on your credit report, help is available. This has now changed.īefore covering how hardship is treated, we recommend you review our debt information page, which covers credit scores and credit reports. ![]() Previously, your credit report might have shown you had missed repayments during the arrangement but would not have necessarily identified that this was due to financial hardship. ![]() Instead, it will depend on their assessment of your financial circumstances and why your repayments are overdue.From July 1, 2022, changes to credit reporting laws that impact how hardship is reported took effect. Your lender is not obliged to agree to a financial hardship arrangement. If you ask for financial hardship assistance your lender will consider your circumstances to work out what sort of arrangement is best for your. an extension of the remaining term of the loan to permanently reduce the monthly payments.
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