How to apply for a credit card or loan payment holiday and get a 0% overdraft of £500
STRUGGLING households have been given a glimmer of hope as banks have been told this week to do more to help borrowers.
City watchdog, the Financial Conduct Authority (FCA) wants banks and building societies to give credit card and loan customers a break from payments if they've been hit financially during the coronavirus crisis.
⚠️ Read our coronavirus live blog for the latest news & updates
It's also demanded lenders boost agreed overdrafts to £500 interest-free.
These measures are on top of the three-month mortgage holidays chancellor Rishi Sunak has already told lenders to offer.
The FCA hopes banks will agree to the new guidance or even go above and beyond it.
Plans are currently being consulted on with a view to introduce the initiatives late next week.
Also see our round-up of the loans, overdrafts, and credit card help being offered by major banks.
Is there help I can apply for now?
In the meantime, many banks are already offering varying levels of help on loans, credit cards, and overdrafts that you can apply for now.
Examples of help include up to three month payment holidays on credit cards, with some providers also waiving fees and interest.
Elsewhere, overdrafts have been increased by some lenders to £300 interest-free, while others have held off introducing pricey new interest rates.
To follow us on Facebook, simply .
Get Britain's best-selling newspaper delivered to your smartphone or tablet each day - .
You'll be able to apply for the majority of help online and banks are encouraging people not to call or visit branches.
If you do call, bear in mind phone lines are busier than normal, and if you're an NHS worker check to see if special phone times are being offered for you.
Many branches are still open but with reduced hours and banks are encouraging people to only visit if absolutely necessary.
Meanwhile, the Government has promised to pay up to 80 per cent of wages to prevent coronavirus job losses.
People who are not working but kept on payroll could be paid up to £2,500 a month.
However, a huge loophole in the Coronavirus Job Retention scheme could actually see thousands of people laid off.
Will any of these measures affect my credit score?
Where a repayment holiday is agreed as a result of coronavirus, the UK's three credit reference agencies - Equifax, Experian and TransUnion - say it won't impact your credit score as they'll implement an “emergency payment freeze”.
This means it won't be recorded on your file.
It also applies to reduced payments and paused payments, but not to increased credit limits or new borrowing.