No – there won’t be any impact on your credit score.
What is a payment holiday?
A payment holiday (also known as a payment deferral) is a short break from making your usual credit card payment due to a period of financial difficulty. If you’ve been impacted by coronavirus, you can request a payment holiday of up to three months on your Danske Bank credit card, that won’t impact your credit score.
You’ll not make any payments for the period of the holiday, but you still owe any outstanding balances and interest will continue to be applied monthly. This means you will pay more interest and it may take you longer to repay your balance.
You can request a payment holiday if;
- you’ll struggle to meet your usual credit card payments due to short term difficulties in relation to coronavirus
- you’re currently not in arrears and up to date with repayments on your credit card and any other products that you have with us for example your personal loan or mortgage repayments. If you’re already behind on your payments please call us on 0345 600 2882.
Is a payment holiday the right option for me?
There are a few things to consider before requesting a payment holiday, to make sure it’s right for your situation:
- Currently, we offer payment holidays of up to three months. If you feel that you will need longer term support, or you’re worried about starting your payments again in three months’ time please speak to us.
- You won't make any monthly credit card payments for up to three months
- The amount you owe at the end of the payment holiday will have increased as interest will continue to accrue on your balance
- It may take longer to repay your balance and you will pay more overall for your borrowing.
You should consider your options carefully and, if you can afford to continue making your payments, you should do so in order to keep down your overall cost of borrowing.
If you are not up to date with repayments on other products that you have with us, for example your personal loan or mortgage, please contact us on 0345 600 2882 to discuss options on all your products.
Please be aware that if you need independent support regarding your finances, you can get help from Citizens Advice or other debt counselling agencies.
What happens once I make a payment holiday request?
Where we can, we’ll start your payment holiday from your next payment date. However, if your monthly statement has already been produced, we may not be able to start your payment holiday until your next statement.
Our advisors will confirm the start date of your payment holiday on the phone. We’ll then send you confirmation of your payment holiday details by post.
It is important that you don’t cancel how you normally make your monthly payments until you have spoken to one our team and a payment holiday has been granted. Our team will advise you whether this is necessary.
Will taking a payment holiday have a negative impact on my credit score?
Can I still use my credit card?
Yes you can continue to use your credit card as normal, but it’s important to be aware of your balance and spending so that you don’t exceed your credit limit, as interest will continue to be applied to your account during the payment holiday period.
What happens at the end of the payment holiday?
Your normal monthly payments will resume, but your next minimum payment amount will be higher due to the increased balance from interest accrued during the payment holiday and any further spending on your card.
What if I’m still unable to pay at the end of the payment holiday?
We understand these are very uncertain times for many and we have different support options to help individual circumstances. If you’re worried you can’t afford to return to your regular contractual payments, please get in touch with us before your next payment date to discuss your options.
I have two credit cards, can I request a payment holiday on both?
Yes, if you have two or more credit cards you can request a payment holiday for up to three months on both credit cards. You should consider your options carefully and, if you can afford to continue making your payments, you should do so in order to keep down your overall cost of borrowing.