Understanding the impact of financial assistance

The credit reporting system includes financial hardship information. Your credit report includes your repayment history for credit accounts like credit cards, home loans, personal loans and car loans.

When a financial assistance arrangement is in place, this will appear on your credit report as  'financial hardship information'. If you meet the repayments agreed to in the arrangement, your repayment history will show that you have met your obligations.

Financial hardship information will not impact your credit score if you meet your obligations under the agreed arrangement and will be removed off from your credit report 12 months after your final payment under the arrangement.

For more information about Comprehensive Credit Reporting (CCR) and what a financial assistance arrangement means for your credit report visit the Credit Smart website.

If you are approved for financial assistance on your Home Loan, interest will continue to accrue, and your loan term or maturity date will not change. When the financial assistance arrangement period ends, your repayment  will be recalculated to include the missed payments and interest over the remaining loan term.  This may increase your repayments however your interest rate will not be affected.

If you are approved for financial assistance on your Credit Card, the interest will be paused during the arrangement period. During this time, your card will be blocked from any spending, this restriction will continue for 6 months after the financial assistance arrangement ends.  Removal of the block will be subject to meeting our reinstatement criteria.

If you request assistance for your Car Loan, changes to your future repayments will be confirmed with you before they become effective.

If you have a joint account and you’re experiencing financial difficulty, we can assist you. If you ask us to, we can do so without involving the other joint account holders initially. See Domestic Violence and Financial Abuse Support if you’re experiencing domestic violence or financial abuse.

Once a financial assistance arrangement is approved all borrowers and guarantors to the loan will be notified.

While your application is being assessed, your repayments continue to fall due. If you ask us to, we can temporarily suspend your direct debit while we assess your application if you do not have the capacity to meet your repayments.

It is important to note that if your repayments are or become overdue because of due to suspending your direct debit while we assess your application, or you are currently in arrears, this may be reported to credit reporting bodies.

If your application is declined, your direct debits will recommence.