Rebuilding Credit Worthiness after DRO

thepurplegoldfish

Hi All

Just a quickie for you. I was subject to a debt relief order from June '10 - June '11 and I have written to all my creditors and had my credit files updated to show everything as being settled/satisfied.

I am wanting to start looking at rebuilding my credit worthiness because you never know when I'll need credit etc in the future, so I thought if I try and to sort things out early enough in the future when I need credit it will be easier to obtain better rates etc.

I don't want to run up debts at all (thus I don't care about the current rates as it'll be paid off within hours of making purchases, i.e. buying supermarket shopping on credit card and paying it off when I get home).

Before I apply for anything though I wanted to know what success you've had credit obtaining with companies after DRO, as I don't want to get into a rejection spiral. Are there any companies that are more accommodating to us ex DRO/ Bankrupts?

Any Advise?

bec-_2

Hello, just a quick question for you.
My DRO is due to end at the end of november. What EXACTLY happens, and how quick is it?
Wondering if you get another budget form to fill, and how quickly you get notified of completion?
At the end of Dec i will be moving in with partner, and obviously circumstances will change from those stated for DRO.
Really need it sorted as don't want debts hanging over us as we start fresh........

any advice welcomed :j

thepurplegoldfish

Hi Bec

My Advise based on my experience

Step 1 - Call the insolvency service and get a letter showing all is done and dusted (they don't contact you when the DRO finishes, you're just mean to go off the end date (1 year from start), this letter will become useful further down the line.

Step 2 - Get copies of your credit files (Experian, Equifax and CallCredit) - find out from the credit reports who hasn't updated your files to show the account balance as £0 and the status Settled or Satisfied.

Step 3 - Download the 'Clean Up' letter from MSE (someone'll be kind and add the link for you, as I don't know how to) and send to the creditors that haven't updated your files and request they do this as they are required to do so. (I sent a copy of the DRO and a copy of the letter I requested from the insolvency service too, just to speed things up, I didn't want them writing back to me asking for proof and elongating the process).

Step 4 - Check your credit files again a few months later to make sure you files are up to date (this is very important as things that are still showing as outstanding/defaulted will have a negative impact on future credit applications and if your wanting to make a clean break (like me) it's best to get this sorted ASAP so you can move on and leave the whole sorry saga behind you without worrying that something is going to bite you on the bum later on.

Step 5 - This is where I am up to. You'll need to start rebuilding your credit worthiness, but the only way to do this is to be given credit but you can't get credit because of the DRO and bad credit history. It would be easy to apply for all the cards and catalogues etc in the hope that someone at some point will take a chance on you but by doing this you'll wreck your credit history even more and end up in a 'refusal spiral'. I am hoping that someone can provide a name or a few names of companies who'll take a chance on us DRO/ Bankrupts and that I can apply to a company that I feel as though I'd have a chance with rather than wrecking my future chances by applying (and being rejected) for anything and everything.

Take Care

b3ckford

After my IVA finished and I got my certificate, I applied for a vanquis CC got accepted and started me on a £250 limit. 4 months on that limits has increased to £500 and I'm getting all my green 0.

I kept my current account throughout and some old CC that are settled now that wernt in my IVA are still showing as green so my credit report dosent look to bad. Next year when the IVA and defaults drop off my report it should look healthy.


Also make sure your on the electoral register as this makes a massive difference

Hope this helps

thepurplegoldfish

How long did you wait for applying?

b3ckford

Well, my IVA finished on the 20/12/2010 but i didnt get my certificate untill the end of march 2011 i then applied in april.

At first it said i was refered but then a few days later i got a phone call confirming details etc so all in all took about 2 weeks.

i made sure before i applied that the IVA was satisfied on the CRA before applying. i still had outstanding defaults that needed clearing up but got accepted anyway!

also vanquis only searched experian and not equifax or call credit

casanaturale

Hi, I am a new member but have been following this thread, I didn't realise til this week that I had to notify the insolvency service when my DRO time was up! Mine finished last December. Could somebody please add the link for the MSE 'clean up' letter as I can't find it on here at all and I'm getting frustrated! Thank You so much.

It's good to know I'm not the only person with a DRO and I do believe that those of us who are in this position are the ones taking responsibility for our mistakes - not those who are out there banging their credit cards to the hilt.

I might have no credit but at least I can sleep at night now.:j