Payment holiday

Cliddy09

Over the past 2 years I've had an excellent fixed price energy tariff. Knowing that my payments would rocket at expiry time I deliberately overpaid.
Now on my new eon tariff I've a healthy credit. So I asked eon to significantly reduce my monthly payments to eat into my credit.
They won't do it enough to make much difference, but they offered a payment holiday. Thought it a good idea so agreed.
But..... will this effect my credit rating, will the powers that be distinguish between a positive and negative type of of holiday?

la531983

Why don't you just initiate a switch to a new provider, get all the lovely money back, and start again with someone else? 

Hoenir

In what way would it impact your credit rating ?  

la531983

Hoenir said:

In what way would it impact your credit rating ?  

Utilities companies report to credit agencies, he clearly thinks that they report payment holidays in the same way a mortgage provider does.

To be honest I don't know the answer, hence my suggestion just to move away from them and get all the cash back. 

bluelad1927

Variable DD (pay for what you use) is the way to go if you are disciplined enough to keep the money aside and don't want to change provider
 I've done it for a year with EON. Got a healthy balance in my own bank account and last year spent 50% of what they wanted as a monthly DD.

molerat

If you want to stay on a fixed monthly DD in future just go to variable to eat up the credit then switch back to fixed DD when it has all gone.

Hoenir

la531983 said:

Hoenir said:

In what way would it impact your credit rating ?  

Utilities companies report to credit agencies, he clearly thinks that they report payment holidays in the same way a mortgage provider does.

To be honest I don't know the answer, hence my suggestion just to move away from them and get all the cash back. 

Easy to start overthinking things and simply do what needs to be done.  With  payment holiday there's an agreement to temporarily not pay a debt owed. Utilising an existing credit balance isn't a holiday.