applying for a loan whilst on debt managment agency?

misshopson

hi

i was wondering about the question above. if i were on the debt management plan does that affect my credit rating? wouldnt i be able to get any more credit? and if i were to come off it would that be wiped of my credit rating file?

jonesMUFCforever

If you are already in difficulties over old credit what sort of idea is it to get new?

Your credit files will be shot anyway and I don't see a queue of lenders wanting you as a customer.

mjm3346

If you are on a DMP you are not supposed to get any further credit (you would not have money left over to make repayments anyway). You will almost certainly have defaults registered on your file so are very unlikely to find much by way of credit for several years.

Tubbss

Hi,
As you are on a debt management plan, either you or your debt management company will be making a reduced payment to your creditors - so every month your accounts will be falling further into arrears by the difference between what you are paying and what the contractual payment is. Some of your creditors (although not obliged to) may have frozen the interest, if not, then the balance of your accounts could actually be increasing each and every month as the monthly interest is added.

This means the following on your credit file - each month that only a part payment is made will be recorded as a missed payment, and the balances on your accounts will either be increasing or not coming down by much / if anthing. These will remain on your credit file for 6 years wether you come off the debt management plan or not.

It would appear to me that you may have rushed into a debt management plan without fully appreciating the ramifications - you will find it near on impossible to obtain any form of credit whatsoever for at least the next 6 years.

Tixy

Who are you doing your DMP with? is it with a commercial company that charge a fee?

As part of then terms of your DMP you will agreed not to take out anymore credit at all.
Your accounts will probably all have defaults and or notice of arrangments to pay and you chances of getting any credit (aside from payday loans) is remote. But you shouldn't be getting those either as your DMP provider may refuse to continue with your DMP, and you could end up in a bigger mess and your creditors could become more heavy handed / might decide to take you to court.

What did you want a loan for? If for luxury items then you'll have to wait until your DMP is paid. If for truly essential items you may be able to negotiate to reduce your payments in to your DMP.

Nicolejan

I sympathise with you. I am also on a DMP which is ticking along just fine but i have the opportunity for promotion within my work place but have to have a car for the position. I can not obtain credit to buy a car. I dont want to borrow much (around 2000). Obviously if i had the job i could pay my plan off more quickly. Ita a catch 22 situation. Most of the companies offering bad credit loans are very suspect.
Can any one recommend a reputable company?

Tubbss

Hi Nicolejan -

Quick answer - there are no reputable companies that will lend to anyone who is on a debt management plan as you have already demonstrated that you cannot maintain your credit obligations. I appreciate that everyone who enters into DMA has their own reasons for doing so, but to the lenders is it pretty much black and white. Sorry if this is not the answer that you wanted to hear, but as several of the previous posters have advised, you may be breaking the terms and conditions of the plan to even apply for further credit.

richard9991

misshopson wrote: »

hi

i was wondering about the question above. if i were on the debt management plan does that affect my credit rating? wouldnt i be able to get any more credit? and if i were to come off it would that be wiped of my credit rating file?

the creditors in the DMP can and do check your credit file any time and if they see new credit on there they will say that you are being unfair to them because the new credit will not be in the DMP then they may demand full payments of your debts

misshopson

the purpose of the loan was to pay of some of the debts and coming off debt management plan. thanks guys for ur advice

Nicolejan

My husband was made redundant 18 months ago and couldnt find work. He had never been unemployed before. I only work part time and we have 3 children. My priority was keeping a roof over their heads. We contacted the CCCS immediately as we thought it the responsible thing to do and entered into a debt management plan. Prior to this we had not missed any payments.My husband has been working for the last year but he now works for an agency for almost half the hourly rate but he works every hour he can.I hadnt realised i could be breaking the terms of my contract. Im just trying to find ways to dig myself and my family out of this hole we are in.

woody01

misshopson wrote: »

hi

i was wondering about the question above. if i were on the debt management plan does that affect my credit rating? wouldnt i be able to get any more credit? and if i were to come off it would that be wiped of my credit rating file?

Are you serious?
The reason you are on a Debt Management Plan, is that you are poor with your finances and you are supposedly 'skint' enough to not be able to pay your creditors the correct amount each month.

How on earth is a loan going to make it better when you can't pay now?

Nicolejan wrote: »

I sympathise with you. I am also on a DMP which is ticking along just fine but i have the opportunity for promotion within my work place but have to have a car for the position. I can not obtain credit to buy a car. I dont want to borrow much (around 2000). Obviously if i had the job i could pay my plan off more quickly. Ita a catch 22 situation. Most of the companies offering bad credit loans are very suspect.
Can any one recommend a reputable company?

The reason bad credit loan companies are 'suspect' is that they are lending money to people that cannot manage their own finances.
Therefore, there are no reputable companies that offer bad credit loans, because the reason they are reputable is that they do not throw their money away to borrowers that most likely wouldn't pay it back. ie...people with DMP's in place or rubbish credit.

Im just trying to find ways to dig myself and my family out of this hole we are in.

Maybe you are, but it will just make the hole deeper if anyone gave you the money.