Credit card payment holiday

If you think you'll struggle to make your monthly credit card payments, we can offer you a credit card payment reduction. This means you can temporarily reduce your credit card payments to £1 per month, for 3 months.

Under a credit card payment holiday, we will allow you to reduce your monthly payments to £1 per month, for 3 months. Your reduced payments won't be reported to Credit Reference Agencies and won't affect your credit status, however lenders may take into account other information when making future lending decisions. For example, they may ask you to confirm this when you apply for credit or may ask to look at your bank statements.

Credit card payment holidays will be available until 31 October 2020.

Who can apply for a credit card payment holiday

You can apply if you meet all of the following:

  • Your finances have been affected by coronavirus. For example, you can’t work due to self-isolation or new childcare responsibilities.
  • you are up to date with your monthly credit card payments, and,
  • the account is held in your name (you’re not an ‘additional’ cardholder).

If you’re already behind on your credit card payments, please see our Money Worries page.

What impact will a credit card payment holiday have on my future repayments?

We’ll continue to charge interest to your account during your payment holiday. This means that the overall amount you’ll need to pay back will increase. Because of this,we’ll need to calculate a new minimum repayment for you when your holiday ends.

Here are two examples of how credit card repayments might go up after a payment holiday.

Example credit card balance Outstanding Balance £4000 at 15.9% per annum Outstanding Balance of £4000 at 19.9% per annum
Current minimum repayment £89.49 £100.96
New minimum repayment when payment holiday ends £92.78 £105.56
Increase in minimum repayment when payment holiday ends +£3.29 +£4.60

Please note:

  • Examples assume that no additional spending is carried out during the payment holiday period and that the total outstanding balance is interest bearing throughout (this means the rate of interest being charged is greater than 0%).
  • If you are currently on a promotional rate of interest (e.g. you are still within your introductory period), these examples do not apply. Your interest rate is shown on your statement.
  • Examples are illustrative only and may depend on when your payment holiday starts.
  • The minimum repayment amounts will depend on your individual circumstances, as well as the minimum repayment terms for the specific credit card product you hold with us.
  • Examples given are based on a minimum repayment amount of 1%, plus interest. If you hold a Cash Reward, Gold or Classic Card with us, your minimum repayment terms will vary.

Before you apply for a payment holiday

It’s important to remember that a credit card payment holiday is a temporary change to your normal monthly payments, to help you out in the short term.

Things to consider before applying, to make sure a credit card payment holiday is right for you:

  • You will have to pay at least £1 a month for 3 months while on the plan.
  • If you have a direct debit set up to pay your monthly credit card bill, you must make sure it’s set up to only pay the Minimum Payment Amount, not a fixed or full amount.
  • Your reduced payment of £1 will begin on your first statement date after the plan is first set up. The earliest we can start is April 2020.
  • During the plan, interest will be charged at your standard rate, and you’ll be able to use your account as normal.
  • Currently, we can only offer a 3 month payment holiday. The best time for you to take one out will depend on your personal situation.
  • At the end of the payment holiday, the minimum payment goes back to the percentage shown in your terms and conditions. The amount of the payment will always be shown on your statement.

It’s important to remember that if you take a payment holiday, it’ll take you longer to repay your balance. So, you’ll pay more in total for what you borrow.

We really hope this helps but please do think carefully before requesting a payment holiday. Only ask for one if you need financial help immediately and for a short period of time.

If you can afford to make some repayments at the moment, even if it’s just the minimum amount, this may be a more suitable option for you than taking a payment holiday.

If you choose to apply, you’ll need your 16-digit credit card number. You can find this on the front of your card.

What happens after I apply?

We’ll do our best to start your payment holiday from the date your next payment is due. However, if your next payment is due in the next few days, your payment plan might start the following month. We’ll let you know in writing when your 3 month period begins.

We’ll try to let you know whether we’ve accepted your application within 5 to 7 working days from when you apply. However, we may take longer to process your application. Some of our employees are self-isolating, and there is a lot to do, but we'll continue to work as fast as we can. As always, supporting you is our top priority.

Please bear with us and avoid calling in to check on progress, or re-requesting your payment holiday. Rest assured we have your application and you’ll hear from us soon.

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