COVID-19: Will a personal loan repayment freeze affect my credit score?

By Polly Fleeting · · 2 min read
Fact Checked
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Does the idea of a repayment freeze give you chills when it comes to thinking about your credit score? This recent announcement might just help. 

Banks across the country have been assisting struggling loan customers with their repayments in a number of different ways. 

In fact, nearly 40 personal loan lenders on the Mozo database are currently offering personal loan relief during COVID-19, the majority of which are offering borrowers repayment freezes for up to at least 3 months. 

So what does it mean for your credit score?

Earlier this month, the Australian Banking Association (ABA) announced that customers’ credit scores won’t be impacted if they need to take out a repayment deferral during these difficult times. 

Not only does the decision incorporate home loan customers, but other credit product categories like personal loans and credit cards as well. 

Mike Laing, chief executive and chairman of the Australian Retail Credit Association (ARCA) says there is no need for personal loan customers to worry when it comes to repayment freezes and their credit score. 

“If you have been granted COVID-19 assistance from your lender, a payment pause or deferral, it won’t show as a missed payment on your credit report,” Laing says. 

“Instead, the repayment history information will either be reported as 'up to date,’ or no repayment history information will be reported. Additionally, lenders will not list defaults against any consumer that has been granted assistance due to hardship resulting from COVID-19.” 

He says that lenders understand the financial pressure that many people are under as a result of the coronavirus, just as they do when people are made redundant or for people that suffered as a result of the recent bushfires. 

Will pauses affect the likelihood of me getting a loan later down the track? 

While it’s true that repayment freezes will not be currently taken into consideration in your credit report, there are some other things to consider that may affect your chances of getting a loan. 

Laing says that credit providers don’t only look at your credit score when assessing a loan application. They also consider other factors that aren’t in your credit report, such as income, expenses and your employment status. 

“If you apply for credit in the future, before approving your loan, lenders will take your whole situation into consideration – not just whether you needed help with repayments during COVID-19, but also things like what your income and expenses will be going forward,” he says.

“Seeking assistance from your lender due to COVID-19 will not exclude you from applying for credit in the future. Please keep in mind that most lenders don’t just rely on a single credit score when they assess you for a loan or credit application.”

RELATED ARTICLE: COVID-19: A quick guide to getting relief on your personal loan 

Want to find out more about how banks are helping customers during the pandemic? Check out coronavirus and your finances. Or if you’re on the hunt for a personal loan take a peek at the table below for some killer options.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 232 personal loans using the filters.
Last updated 5 December 2025 Important disclosures and comparison rate warning*

Personal loan comparisons on Mozo

  • Promoted

    Unsecured Personal Loan

    • Fixed
    Interest rate from
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    Comparison rate from
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    Monthly repayment
    $606
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    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

  • Promoted

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    Interest rate from
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    26.95 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
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    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023, 2024 & 2025^'

  • Promoted

    Low Rate Personal Loan

    • Exceptional Credit, $5,000 - $75,000, or up to $100,000 for eligible purposes
    Interest rate from
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    Comparison rate from
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    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Competitive low rates for borrowers with exceptional credit on 1-7 year loans from $5,000 up to $75,000 (or up to $100K for home improvements or car loans); no monthly account keeping fees, no exit fees and no early repayment fees. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

  • Unsecured Personal Loan

    • Fixed
    Interest rate from
    5.76 % p.a.
    to
    24.03 % p.a.
    Comparison rate from
    5.76 % p.a.
    to
    24.98 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $606
    Go to site

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

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    Interest rate from
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    Based on $30,000 over 5 years
    Monthly repayment
    $606
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    Roll multiple debts into one loan to streamline your finances with one set of repayments and one interest rate. Competitive fixed interest rates with no monthly or early repayment fees and flexible repayment options. Easy online application and funding in as little as 24 hours (subject to approval).

  • Unsecured Personal Loan

    • Fixed
    Interest rate from
    5.95 % p.a.
    to
    26.95 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    26.95 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023, 2024 & 2025^'

  • Low Rate Personal Loan

    • Exceptional Credit, $5,000 - $75,000, or up to $100,000 for eligible purposes
    Interest rate from
    5.95 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Competitive low rates for borrowers with exceptional credit on 1-7 year loans from $5,000 up to $75,000 (or up to $100K for home improvements or car loans); no monthly account keeping fees, no exit fees and no early repayment fees. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

  • Secured Personal Loan

    • Exceptional Credit, $5,000-$75,000 or up to $100,000 for eligible purposes
    Interest rate from
    5.95 % p.a.
    to
    18.99 % p.a.
    Comparison rate from
    5.95 % p.a.
    to
    21.78 % p.a.
    Based on $30,000 over 5 years
    Monthly repayment
    $608
    Go to site

    Get a secured personal loan with competitive low rates for borrowers with exceptional credit. A simple fixed interest rate that can be repaid weekly, fortnightly or monthly, over 1 to 7 years (10 years for Green Loans). Managed entirely online, at any time. No monthly account keeping fees, no exit fees and no early repayment fees. Quick and easy, 100% online application. Establishment fees apply.

  • Unsecured Personal Loan

    Interest rate from
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    Comparison rate from
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    Based on $30,000 over 5 years
    Monthly repayment
    $610
    Go to site

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away.

  • Personal Loan

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    Comparison rate from
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    Monthly repayment
    $636
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    A Latitude Personal Loan offers flexibility and control for your major purchases, debt consolidation, or renovation plans. Get a personalised rate in two minutes without impacting your credit score. You'll enjoy a fixed rate, a repayment schedule that suits your budget. Plus, for Mozo customers, the $395 establishment fee is permanently waived. Latitude offers borrowing options from $5,000 over terms of 2 to 7 years. Repayments can be weekly, fortnightly, or monthly.

Showing 7 results from 232 personal loans. Use the filters to see more

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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