Will Hardship Care have an impact on my credit rating?

Missing repayments and/or defaulting on your loan can have consequences for your credit rating and your ability to obtain credit in the future. That’s why it’s better to act quickly and put a plan in place to get back on track.  

A Hardship Care arrangement doesn’t mean your credit rating is ruined.

Hardship Care is here to help you manage your repayments and rebuild a healthy repayment history. Your repayment history will be a key consideration for lenders assessing any future application for credit you may make. 

Who needs to know about your Hardship Care arrangement?

We don’t report to the credit bureaus that you are under a Hardship Care arrangement, but we do report to them that your account is ‘up to date’ if you maintain the agreed Hardship Care repayments.

If you have payments overdue at the time you’re approved for Hardship Care, we’ll reset your account to a ‘current’ or ‘up to date’ status at the start of your Hardship Care arrangement. If you maintain the payments agreed under your Hardship Care arrangement, your account will remain ‘up to date’ and each repayment you make will help to rebuild your repayment history.

Government regulations on reporting hardship are changing, though, in July 2022. We’ll have more information available about this closer to the date, but in the meantime, you can keep up to date on the Credit Smart website.

Keeping in touch during your Hardship Care arrangement.

You can rebuild a better repayment history by keeping up to date with any payment arrangement we’ve agreed.

We’ll keep an eye on how things are going throughout your Hardship Care arrangement and reach out from time to time to let you know how things are progressing or if anything goes off track. As you approach the end of your Hardship Care arrangement, we’ll get in touch to let you know the next steps.

Want to know more? Click here to view our other articles about Hardship Care.

Need more advice?

If you’re worried about your finances, consider getting in touch with the National Debt Helpline. They’re a not-for-profit service offering online and over-the-phone support to help with managing money and/or debt, or they can put you in touch with a local Financial Counsellor in your state or territory for face-to-face help. Visit their website or call 1800 007 007.