What difference does an 'Alternative Payment Plan' make to credit status/score 30 November 2022 at 4:25PM in Credit file & ratings 2 replies 113 views

Bluberry139

Hi i just got accepted onto Severn Trent Water's scheme to reduce water bills for those on low income. Got the tip from MSE's most recent email.

But in the welcome letter it says they will share that i have asked for help with credit agencies. It says on their website 

"If you are on an alternative payment plan, for affordability reasons, or to cover debt on the account, you will be reported as an “i” to Credit Reference Agencies. This indicates to the Credit Reference Agency that a non-standard payment arrangement with Severn Trent is active on your account. We report alternative payment plans as a different payment plan to support other businesses make responsible lending choices."

I am on a low income & benefits & thought if i could get a discount that would be great, we al need to take whatever help we can get in these difficult times but am a bit concerned... i am not in debt & am not (yet) in financial trouble...  I have a good credit rating & i often switch bank accounts for the purpose of getting the switching bonus. I dont want it to look like i am a bad bet because i asked for help with my bills, because the current account switches always involve a credit check.

does anyone know what difference being reorted as an "i" will make?

Ebe_Scrooge

Your score is irrelevant as it's not used, nor even seen, by any lender.  Yes, they will be able to see that you've entered into an agreement for reduced payments with ST.  But that's highly unlikely to have any impact on your ability to switch bank accounts.  It may be more of a concern if you were applying for a mortgage or similar, but switching bank accounts should be no issue.

Bluberry139

 Ah oh thanks for that, thats a relief!