DMP's do they affect your credit rating?

bingbong_3

Hi

Just wondered whether a DMP affected your credit rating and why if they do.

I could understand an IVA affecting it but not a DMP.

Thanks

poppy52

Yes it does. -the minute you stop making at least minimum payments. Most creditors also issue you with defaults during the DMP and those are recorded. Most people accept that if they need a DMP their credit rating is probably already poor, and the last thing they will need in the next few years is more credit. Frankly, as far as I am concerned a bad credit record is the least of my worries!

davek1

Bingbong

Generally DMP affects your credit rating because you are not meeting your contracted repayments. this means you generally end up in a default situation and behind in payments it is this that affects your credit rating not the DMP itself.

Dave