How much does a DMP affect credit rating?

JJ7001

Hi

I'm currently a private tenant and foolishly ran up 15k debt and I'm at the stage where I need to start a DMP. How badly will this affect my credit rating? In the short term will it affect my ability to rent property and when I look at getting a Mortgage will it be very difficult?

Hiddenidenity

I will affect it quite badly really becuase you will "default" on the accounts.

Sorry Im not much use. Someone with better advice will be along soon

Gordon_Hose

Having defaults doesn't affect your ability to rent property.

Any defaults will drop off your file after 6 years whether they are paid or not. So you the chances of getting a mortgage for the next 6 years will be slim, especially from mainstream lenders who offer the best rates.

DS4215

If any of those debts is particularly high then they are more likely to go for a CCJ against you, which could also make it harder to rent a new place in the future.

toughtimes

I started a DMP last year but I now very much regret it becuase it has completely ruined my credit. I was unaware at the time, but just before I started the DMP I had a good credit rating and could have accessed a consolidation loan from a bank. I now have terrible credit and my bank won't even given me a £10 overdraft. I don't actually want any credit now except for the biggie - a mortgage. With defaults this becomes much, much harder - at least until the defaults drop off and you can build up a good credit rating again after six years. My advice would be to check your credit rating, and then decide whether or not to start on a DMP. If you would like to buy a property and take out a mortage in the next six years then avoid a DMP if you can at all.