Queries re DRO

walker123

Hi there.

I have just started a self managed DMP but have made an appointment with CAB to discuss other options - mainly because a DRO has been mentioned to me.

I have a few queries that I know the CAB will be able to answer but I am impatient and want to know before my appointment next week

1. I have an FLM loan, guaranteed by my mum - she is willing to take over the monthly repayments but will it affect her credit file if she is paying rather than me?

2. I want to rent in the next couple of years - will this affect my ability to pass a lettings credit search?

3. Is it completely wiped from my credit file after the 6 years?

Your help is appreciated and any other DRO feedback would be appreciated.

coinxoperated

You do definately need to speak to a CAB or CCCS adviser regarding the FLM loan. Normally you would have to include ALL of your debts into a DRO. If its joint they will go after the cash from the other party. I'm not sure how this works if its a gurantor on it, but I'm assuming its pretty much the same.

In regards to renting - it will effect you. It is a sign that will come up saying you have been unable to pay your debts. It will effect your credit in the long term. Obviously these issues can be avoided to a degree if you tell them about it before doing checks etc but some agencies/landlords are so picky. they may also ask for more of a deposit to cover if you do fail to pay

3: yes!

debt_doctor

walker123 wrote: »

Hi there.

I have just started a self managed DMP but have made an appointment with CAB to discuss other options - mainly because a DRO has been mentioned to me.

I have a few queries that I know the CAB will be able to answer but I am impatient and want to know before my appointment next week

1. I have an FLM loan, guaranteed by my mum - she is willing to take over the monthly repayments but will it affect her credit file if she is paying rather than me? This debt will have to go in to your DRO, and liability will then fall to your mum. If mum pays in accordance with what she agreed then all will be well.

2. I want to rent in the next couple of years - will this affect my ability to pass a lettings credit search? Yes, a DRO, as does any non payment of credit debts, has a serious affect upon your credit rating.

3. Is it completely wiped from my credit file after the 6 years? Yes.

Your help is appreciated and any other DRO feedback would be appreciated.

Hope that helps.

DD

walker123

Thanks for all of your responses. Appointment made at CAB for Friday. Can I just ask one more question?...

I currently have a Natwest Basic Account - I don't owe Natwest any money; would I be able to keep this account open?

fatbelly

walker123 wrote: »

I currently have a Natwest Basic Account - I don't owe Natwest any money; would I be able to keep this account open?

If it's moderately in credit, not a problem. Doesn't even appear on the application.

walker123

Thanks fatbelly. It usually stands at between 50p and £15 after bills have come out. Feeling positive now for meeting on Friday!