About changes to payment holidays

As of 1 April 2021, we are no longer accepting new applications for credit card payment holidays.

However, if you’re already on a payment holiday and you need more support, you can apply for an extension.

As long as you are currently on a payment holiday, you’ll be able to extend it up until 31 July 2021.

This is as long as:

  • it doesn’t go over the 6-month payment holiday limit, and
  • there are no gaps between the payment holidays.

If you’ve already had 6 months of support, you can’t apply for a payment holiday extension

If you still need help with your credit card payments, find out what you can do after your payment holiday ends.

All payment holidays must end by 31 July 2021.


Who can apply?

You can apply for a credit card payment holiday extension if:


  • Your finances have been affected by coronavirus – for example, you can’t work due to self-isolation, or new childcare responsibilities.
  • You’re up-to-date with your monthly credit card payments.
  • The account is held in your name (you’re not an ‘additional’ cardholder).
  • The support doesn’t go over the 6-month payment holiday limit, and
  • There are no gaps between the payment holidays.

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


Get support with a payment holiday extension

If you want to benefit from the full 3 months of available support, you should apply 7 working days before your May 2021 statement date.

If you haven't taken a payment holiday or are not eligible to apply and need help with your credit card payments, visit our If you still need help with your credit card payments section.


The impact of extending a credit card payment holiday

Your credit rating

Although a payment holiday extension won’t affect your credit rating, lenders may look at other information (for example, information provided by you, or bank account information) when they decide whether to lend to you in the future.

Future payments

It’s important to understand that interest will continue to build  at your usual interest rate during the holiday.

This means that the total amount of interest you’ll pay back will increase. As a result, your monthly minimum repayments at the end of your holiday will be higher.

How much your minimum repayments will be after the payment holiday will depend on:

  • your individual circumstances
  • the minimum repayment terms for the specific credit card product you hold with us
  • when your payment holiday starts.

Examples of payment increases

To give you an idea of how your payments may rise after taking 3 months off.


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

These 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%).
  • Won’t apply if you are on a promotional rate of interest (for example, you are still within your introductory period). Your interest rate is shown on your statement.
  • Examples are illustrative only and may depend on when your payment holiday starts.
  • Are based on a minimum repayment amount of 1%, plus interest. If you hold a Gold or Classic Card with us, your minimum repayment terms will vary.

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.


Before you apply for a payment holiday extension

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

  • You will have to pay at least £1 a month while on the plan. (Payment holidays can last up to 3 months.)
  • 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.
  • During the plan, interest will be charged at your standard rate, and you’ll be able to use your account as normal.
  • 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.

Note:

If you're still able to make your repayments, even if it's just for the minimum amount, then you should continue to do so as it will take you longer to repay your balance and cost you more if you take a credit card payment holiday.


Applying to extend a credit card payment holiday

Online

The first step is to provide us with more detail about your financial situation.

The quickest way to do this is by filling out our form online. To help you complete the application, please have information about your income and outgoings to hand.

Once we’ve received your form, we’ll review it and get in touch by phone within 7 days.

Complete our income and expenditure form

Important:

You only need to complete the income and expenditure form once. If you've had more than one payment holiday with us - for example, a mortgage or loan payment holiday - and you've already completed the form, you don't need to do it again.

Over the phone

If you need to speak to someone urgently, you can call us.

Monday to Friday, 8am to 8pm.
Closed weekends and bank holidays.

0800 464 31 23


If you still need help with your credit card payments

Help is still available if you aren’t able to make your payments. The first step is to provide us with more detail about your financial situation.

Online

The quickest way to do this is by filling out our form online. To help you complete the application, please have information about your income and outgoings to hand.

Once we’ve received your form, we’ll review it and get in touch by phone within 7 days.

Complete our income and expenditure form

Important:

You only need to complete the income and expenditure form once. If you've had more than one payment holiday with us - for example, a mortgage or loan payment holiday - and you've already completed the form, you don't need to do it again.

Over the phone

If you need to speak to someone urgently, you can call us.

Monday to Friday, 8am to 8pm.
Closed weekends and bank holidays.

0800 464 31 23