Questions answered: COVID-19 assistance
Does my credit rating go down if I ask for a payment deferral on my loan? Should I just use my credit card to tide me over until the crisis passes? There are myriad questions customers have of their banks as they manage the coronavirus and, in a live chat, Chief Executive Shayne Elliott answered some of the top ones.
“I know there’s a lot of anxiety and confusion but banks are in great shape and able to assist,” he said. “We are aligned with the government on the need to give people breathing space to get through this.”
When asked about whether a customer’s credit ratings will be impacted if they seek a deferral payment from their bank, Shayne’s response was clear: “It will not affect your credit rating. The agreement the banks have with our regulator is that we can offer this deferral without impacting your credit rating.”
But he added “that doesn’t extend to other kinds of arrangements which may or may not impact your rating. If you take the six month break, when the loan goes back to normal, you will have to pay a little bit more or you may be able to extend the life of your loan.”
While ANZ has a range of support measures in place to assist customers, Shayne provided some clear guidance to those who’ve been financially affected:
- Seek payment deferrals if you need them. There is no impact on your credit rating or standing with the bank;
- Talk to your bank if you need further assistance;
- Don't use credit cards and other expensive forms of debt to pay your daily expenses; and
- If you are really in a tough spot, seek advice and counselling.
And for businesses and individuals out there who need to borrow for good reasons Shayne reiterated “We are here to help.”
“We are flexible and willing to continue to adapt our approach as the situation changes. We can’t solve every unique situation but we are making fast and decisive changes that will benefit the vast majority and there will be more to come.”
Please visit anz.com/covid-19 for more on ANZ’s support measures and how you can apply.
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