The honest answer is: it depends, and the two things — the hardship arrangement and any credit file impact — are connected but not the same.
What a hardship arrangement itself does to your credit file: Entering a hardship arrangement with Merion does not, by itself, trigger a default listing on your credit file. A hardship arrangement is a managed repayment plan, not a formal default event.
What can affect your credit file:
- Existing default listing. If a default was listed on your credit file before you entered the hardship arrangement — because the debt was significantly overdue — that listing remains on your file. Completing the arrangement does not remove the listing, but it does update the status to show the default has been paid or resolved.
- Repayment history information. For some types of credit (regulated consumer credit products), lenders report monthly repayment history. A hardship arrangement may affect how that history is recorded, depending on the credit reporter's approach.
- Commercial debts. For B2B commercial debts, the credit reporting rules differ from those for consumer credit. The impact on a business's credit file depends on the creditor's reporting practices.
Merion does not operate as a credit reporting body, and we cannot advise you on what is or will be on your specific credit file. For accurate information about your credit file, contact Equifax, Illion or Experian directly, or speak with a free financial counsellor through the National Debt Helpline on 1800 007 007.
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