Frequently asked COVID-19 Questions #6 | Will pausing repayments affect my credit file?
So the basic answer for this one is no. It won’t affect your credit file in any way.
We’ve had confirmation from almost all lenders not that they won’t be lodging any black marks during the COVID-19 pandemic deferrals.
They also won’t be lodging anything on the internal credit score. So some banks have an internal credit score which takes note of repayments and history with the actual institution themselves.
So all that really means is down the track if you need to borrow with them there’ll be no internal black marks, there’ll be no external black marks on your credit file.
In six months time, if all of this is done and dusted and things are returning to normal in that lending space, you’ve begun making repayments and things, and then you want to borrow some more money, want to look at refinancing, you want to buy a house, how will that be assessed is a really big question that we’re getting asked as well.
So banks as a general rule have said they’ll be sensible when it comes to this stuff because we really don’t know – its an unknown. There’s not much we can do to foresee what and how they’re going to approach those things!
In regards to calculating income, it would be fair and reasonable that they would disregard this period of time out of their income calculations, and we think that that’s how things will go forward.