Payment holiday

[Deleted User]

So I applied for a payment holiday through Barclaycard. Every month I am up to my limit (not ideal I know) so I pay the minimum, take of the interest and spend the remaining. 

I asked them what would happen as when interest is applied I’ll go over my limit, they basically said I need to ensure interest is paid otherwise it WILL affect my credit file. I appreciate interest still needs to be paid, but I’m in exactly the same situation as I was previously. I thought they would have increased my limit (temporarily) to cover the interest.

Willing2Learn

Are you referring to a temporary three-month payment freeze to mitigate the impact of coronavirus?

[Deleted User]

Yes, unfortunately I’ve lost my job, had hoped this would help me but not the case

Willing2Learn

I thought that the temporary coronavirus virus rules meant that any three-month payment freeze would not affect your credit file(s). 

[Deleted User]

I did too, but if I am over my limit due to interest charges at the end of the three month period then it will affect my credit file

eskbanker

As I understand it, it's effectively an amnesty only against late/missing payment charges, not over-limit ones.  Have you asked them about a temporary credit limit increase - the MSE article linked above suggests that this may be an option?

[Deleted User]

I only spoke to them through twitter as I didn’t want to tie up their phone lines. I won’t get charges for going over (that I am aware) but when he says it will affect my credit file I assume that’s because I would be over my limit

[Deleted User]

I received a response from Barclaycard today, seems I have to pay the interest to stop myself from going over my limit, if I don't it means that I will go over and it will be reported to CRA's.

This is absolutely no help to myself. I might as well continue with the minimum payments and spend what's left, the only difference is the money is cash in my account rather than on my credit card. I am lost!  

Willing2Learn

Monthly interest-only payments should be less than any minimum payments.  I would still go with the payment holiday. 

I recommend you visit the Debt-Free Wannabe board, starting a new thread and posting up your completed Statement of Affairs (SOA).  Then we will be able to see your monthly income, expenses, debts and assets.  Maybe we can give you some helpful advice and guidance.


Have you made your application for Universal Credit to ensure you have income during these difficult times?

PixelPound

If you are normally pushing to your limit without the added current circumstances, you may want to post in the Debt-Free Wannabe board.
The companies normally post if you are over limit or miss minimum payments, they have just said they won't report missing minimum payments. TBH if they did temporary allow you to go over limit due to interest, what happens in 2 or 3 months when you are over limit and the restrictions end? Most likely you would not be in a position to clear the over limit, especially coming out of a period on reduced or no income and normally not being able to make a dent in your debt. If it required more than your normal minimum payment to get it back below limit you'd face reports to credit files.

MR-1K-TOWN

Hi All,
Barclaycard says that a payment holiday shouldn't affect credit scores but they do say this

'Taking a payment holiday won’t affect your credit score – but it will be recorded on your credit file'

What does it mean recorded on your credit file. I've read elsewhere that it shouldn't be on your credit file at all.

Any ideas?