interest freeze

worriedDan

Morning all,
for the last 6 months or so I have been on an interest freeze for my Creation credit card accounts and also my Barclaycard platinum. This was offered to support me with some ongoing health issues.

When this support was offered I was assuered by both lenders that my credit file would be unaffected.

Barclaycard have put my account on hold and will only report adverse credit history if I miss any of my minimum payments, which I haven't. The interest if frozen for the duration of the account being on hold. The lady on the phone assured me that this doesn't constitute a payment plan, or an arrangement to pay etc.

My creation cards have had the interest frozen, but similarily to Bcard I have been told ( in writing) that as long as I maintain the minimum payments then there is nothing adverse to report.

Due to my anxiety disorder, I prefer not to access my credit file regularly. At the height of my problems last year I was logging in several times a day and it definitely contributed to my mental health issues.

Would you trust the two companies that this is accurate? I appreciate the support, but don't want to do anything that trashes my credit for years to come.

DCFC79

Check your reports is the only way to know, check your file at the 3 agencies.

worriedDan

would the companies have had to send me some documentation if I was going on to a formal payment plan, or arrangement to pay?

System

Well if you don't want to do something that trashes your credit file then the decision about that in respect to these two cards was something that should have been made 6 months ago. If you've been on the plans 6 months and they'd put black marks every month the damage is done.

If you go onto a payment plan this is usually confirmed in writing. You've already had it in writing that doing what you are doing won't have an adverse effect. The only way you can check whether or not they have is to look at your report. When you do check though take no notice of the score, just the contents of your file. The score the reference agency creates is a meaningless number no lender uses.

[Deleted User]

Check one of the credit reference agencies, my guess is that it will show as "arrangement" on those accounts where you've contacted the finance provider direct. This is an indication to other lenders that you have entered into an arrangement and may affect a decision should you go for credit.

worriedDan

Hi

I managed to get in touch with the Barclaycard specialist team today. I had a long conversation with a lady who explained that I had not entered into a formal arrangement or payment plan. The interest has been frozen, however I am still making the minimum payments and therefore there is nothing adverse to report. apparently they only report missed/late/reduced payments.

Apparently there would be no trace of the interest freeze on my credit file as I have maintained minimum payments. If I choose to enter into a reduced payment plan then this would have any impact. They have offered to send me a copy of the information that they have reported to the CRA's for the past 12 months.

I had a similar email conversation with creation. The guy that handles my accounts has double checked and has assured me that nothing detrimental has been reported as I have made minimum payments each month. I have this as an email in writing, so I guess that I would be able to challenge anything that does appear on my report.

Feeling reassured!

National_Debtline

Hi Dan


It doesn't sound like you have anything to worry about here. You've doubled checked and they've confirmed there is not going to be any adverse information recorded. But it's always best to put your mind at rest.


If you find in the longer term you are going to struggle paying the debts it may be a good idea to get in touch with of the free debt advice agencies for more help. I hope it all goes well.


Susie
@natdebtline