Arca’s CreditSmart initiative spotlights a persistent issue: consumers believe seeking help automatically damages their credit standing.
Under Australia’s credit reporting framework, financial hardship information (FHI) can be recorded when a borrower and lender agree to relief. Industry guidance indicates FHI is intended to contextualise repayment history during a support period rather than penalise credit scores. Yet the nuance is poorly understood, fuelling avoidable arrears and complaints.