Will this harm my credit file?

Bobbby81

Hey everyone,

A couple of my creditors have agree to give me some breathing space by freezing the interest on 2 of my credit card accounts for a 6 month period.

I am continuing to make the contractual minimum payments ( have never missed a payment) and will continue to do so throughout the 6 month period - they will just be interest free. I suppose it's a bit like a self managed DMP, only without the reduced minimum payment. I asked both creditors if there would be any negative impact on my credit file as I didn't want that. They have both told me that as I am continuing to pay the minimum payments there would be no negative impact on my credit report as there would be nothing to report.

Does this sound correct? I am grateful for their assistance, however I would have politely declined if it was going to harm my credit file for 6 years.

I know that I can check my credit reports but they aren't immediately updated so I need to wait a month or so.

jamesd

That appears to be correct, though there is a chance that it might show up as an arrangement. But they should know how they report things. Since they told you that it would not show up you'd be able to get the entries adjusted if they do show up in an unexpected way. Go for it.

Bobbby81

Would they need to inform me in writing if they were going to log it as an arrangement to pay?

jamesd

Yes, they would, checking is just in case they screw up in some way, since they have said it won't.

Ben8282

You are very lucky that 2 of your credit cards both suddenly and unexpectedly very generously agreed to stop interest for 6 months. Very unusual. Why were you singled out for this exceptional offer?

Bobbby81

Hi Ben

I have mental health issues. Both lenders asked for medical evidence. I am continuing to make my minimum payments as they are manageable when no interest is applied.

takman

Bobbby81 wrote: »

Hi Ben

I have mental health issues. Both lenders asked for medical evidence. I am continuing to make my minimum payments as they are manageable when no interest is applied.

If you havn't done this already you need to take this opportunity to sit down and make a budget and cut down on everything you possibly can. Then use whatever money you have to pay as much as you can off these cards while they are interest free.

Alot of people only pay the minimum but it's extremely unlike that exactly the minimum payment is what they can actually afford. There will always be some savings to be made/ some money being "wasted" that can be used to pay a little more.