Credit Score significantly impacted by Covid Mortgage holiday

sambaird

Well... when I actually applied for the payment holidays, my work situation wasn’t fully confirmed either way - it was 50/50 whether I’d be furloughed or not. So (like many people I suspect), I applied early to get the process started. Fortunately I was told a week later that my position was safe.

In terms of ‘abusing the system’ though, I’m not sure that’s entire fair... none of the credit card companies I’m with actually required evidence to be submitted that I was in financial difficulty at the time.  If they were concerned about people ‘abusing the system’... surely they would have built this mechanism into the application? (Obviously not possible given the manpower this would take and the time constraints at the beginning of COVID).

Also... what exactly have the CC companies lost by me taking the holidays? They are still charging interest after all. They will still get their payments when the holiday ends. What it’s allowed me to do is use my money more efficiently to pay off a higher interest card faster than I would have been able to without taking the holidays.

People game systems all the time in finance - can’t really see the issue with gaming it in my favour when possible.