The banks have implemented a new measure on credit ratings to help Australians who have lost their job or incurred significant income losses due to COVID-19.
As such, any Australian granted a six-month repayment deferral on credit products, such as a credit card, won’t have their credit rating affected – if they were up-to-date with repayments prior to COVID-19.
During the six-month deferral, you will still accrue interest, it won’t be paused, it’ll be added to the balance. Therefore, at the end of the six-month deferral period, you may have higher repayments. To help keep your balance manageable, certain lenders are reducing the minimum monthly payment.
For more information specific to your situation, please read your policy product disclosure statement (PDS) or contact your lender directly.
Last updated: 09/04/2020