Credit Card COVID-19 payment breaks
Here's everything you need to know about delaying your credit card payments
Applications for COVID-19 payment breaks are open until 31 March 2021.
What is a payment break?
A payment break delays your payments for 3 months at a time for up to a maximum of 6 months - so you can make two applications, one for a payment break, and one for an extension.
Though they don't affect your credit file, bear in mind that lenders may look at other information - such as bank statements - when assessing credit applications.
During your break, interest will be charged on your account balance as normal, and your balance will increase - this means your minimum payment could be higher when your break ends and it may take longer to pay off your balance.
Want to find out more?
Apply for a Credit Card payment break
If you haven't had one before, you can apply for a COVID-19 payment break.
- Payment breaks allow you to delay your payments for 3 months at a time, up to a maximum of 6 months.
- If you’ve already missed more than one monthly payment you can’t request a payment break online. Please get in touch now on 0345 671 0677 so we can discuss your options.
- If you don't think a payment break is right for you, we have other support options available. Just go to our financial difficulty page to find out more.
If you've already had one 3 month COVID-19 payment break, you can apply for a payment break extension.
- Payment breaks allow you to delay your payments for a maximum of 6 months.
- You're eligible to apply if you've already had, or are still on a COVID-19 payment break due to end on or before 31 March 2021.
- If you’ve missed more than one monthly payment since your first payment break you can’t request a payment break extension online. Please get in touch now on 0345 671 0677 so we can discuss your options.
- If you think you'll need help with your payments for more than 3 months, just go to our financial difficulty page to see the other ways we can support you.
Payment beaks allow you to delay your payments for a maximum of 6 months. So if you've already had a payment break and a payment break extension, we can’t give you another.
Just go to our financial difficulty page to see the support we can offer.
Things you may need to know before, during, or after your payment break:
- Can I choose the length of my break?
- When will my payment break start?
- Will a payment break affect my credit file?
- Will I be charged interest during a payment break?
- Will I be charged fees during a payment break?
- What about my 0% interest period?
- Can I still use my card during a payment break?
- Can I still make payments during a payment break?
- What happens when my payment break ends?
- Why am I receiving letters?
Can I choose the length of my break?
We can only offer COVID-19 payment breaks for a fixed duration of 3 months, up to a maximum of 6 months. So you can apply for up to two payment breaks. Just so you know, you'll need to make two different applications - one for a payment break, and one for an extension.
If you don't think a payment break is right for you, we have other support options available. Just go to our financial difficulty page to find out more.
When will my payment break start?
We'll aim to start your payment break from the statement period in which you submit your application, and include the next two payments after that.
Once you submit a request we'll take care of everything, including pausing your Direct Debit. So there's no need to cancel it - it's best to leave it in place for when your break ends.
If you're unable to make your latest payment, it may be too late to stop your Direct Debit - so please call us now on 0345 671 0671.
You can find the payment date of your Direct Debit on your statement.
Will a payment break affect my credit file?
COVID-19 payment breaks won’t be reported as a missed payment to credit reference agencies. But bear in mind, lenders may look at other information – such as bank statements – when assessing credit applications.
You may receive letters from us notifying you of outstanding payments, for legal reasons we’re unable to stop these. Rest assured there’s nothing you need to do about any ‘missed payments’ related specifically to your COVID-19 payment break.
Will I be charged interest during a payment break?
Unless you’re on a 0% introductory period, during your break interest will continue to be charged on your credit card account balance as normal. This means your overall balance will increase and your minimum payment could be higher when your break ends - meaning it could take you longer to pay off your balance.
Here are some examples of how a COVID-19 payment break and extension might impact your credit card repayments.
|
Credit card payment break |
Example 1: Outstanding balance £1,800 at 19.9% per annum |
Example 2: Outstanding balance of £1,800 at 26.9% per annum |
|---|---|---|
|
Minimum payment before COVID-19 payment break |
£45.43 |
£54.09 |
|
Minimum payment after COVID-19 payment break |
£46.70 |
£57.30 |
|
Minimum payment after payment break extension |
£49.03 |
£60.65 |
The examples above are used for illustrative purposes only. Your minimum repayment amounts will depend on your individual circumstances and the minimum repayment terms for the specific credit card you hold.
The examples assume you have no additional spending on your credit card during the payment break and that the total outstanding balance is interest bearing throughout (this means the rate of interest being charged is greater than 0%).
Will I be charged fees during a payment break?
You’ll not be charged Late Payment, Over Limit or Returned Item fees during a COVID-19 payment break.
What about my 0% interest period?
A payment break will not change the terms of any 0% interest offer you currently have.
Due to the high number of requests we’re getting, it may take us some time to process your payment break. This could mean you see that your 0% interest rate has been removed. Don’t worry, this is just temporary – we’ll reapply your 0% interest offer once your payment break is set up.
If any interest charges have been applied, we’ll remove them.
Can I still use my card during a payment break?
Yes - when you're on a payment break, your credit card account can be used as normal.
Can I still make payments during a payment break?
If you’re able to make any payments towards your credit card during the payment break, no matter how small, it’s worth doing so. It means you’ll pay less interest - here are your ways to pay.
What happens when my payment break ends?
You don't need to do anything. We'll contact you towards the end of your payment break to let you know when your next payment is due. Your account will go back to your previous payment method - we'll restart your Direct Debit if you have one set up.
If you cancelled your Direct Debit, we can’t restart it automatically. You need to set this up yourself before your next statement date. If you don’t do this in time, you may need to make a manual payment. It’s easy to set up and make changes to your Direct Debit securely using Online Banking or our Mobile Banking App.
Remember, when your payments resume, your minimum monthly repayment amount could be higher than before the break.
If when your payment break comes to an end you still can’t make your payments, we can still help. Just go to our page on financial difficulty to find out how.
Why am I receiving letters?
You may receive letters from us notifying you of outstanding payments, for legal reasons we’re unable to stop these.
Rest assured there’s nothing you need to do about any ‘missed payments’ related specifically to your COVID-19 payment break.