Just finished my DMP

jazzyJeff_3 · 25 September 2013 at 1:45PM

Hello.

I have just finished a DMP with Step Change, took about 5 years,but feels great to be debt free.

Obviously I want to build my credit rating again, so what can you advise me to help improve my credit score? (currently 300 with equifax)

I have also managed to get my monthly out goings down quite a bit and I will be having a payrise in December, which means I will have around £850 per months to play with, any advise on how best to invest this money?

Thanks

Puzzcat · 25 September 2013 at 2:41PM

Sorry don't have any advice for you but wanted to say well done on finishing your dmp.. I am only just starting this journey.

:T

Tixy · 25 September 2013 at 3:06PM

Well done on getting debt free.

What does your credit file show currently?

Is it yet updated to show all debts have been paid off?
Do you still have old defaults etc showing from when you started the DMP?

Do you have any ongoing credit accounts that were not in the DMP (phone contracts or similar, or a mortgage or anything)?

A good way to start building a credit history is to take out a new credit card and use it for a couple of purchases a month and repay in full each statement. Depending on what is on your file will depend on where you may be accepted, but subprime cards are the usual starting point.

Regarding your disposable income/ savings - are you planning to save for anything specific? do you want to keep quick access to your funds? what are your long term goals (e.g. saving a deposit for a house, or saving for a larger house perhaps)?

The first thing I would do is to save money in to a cash ISA (look for best buys) to build up an easy access emergency fund.

Miss_Marple_2 · 25 September 2013 at 4:45PM

Yes - definitely check your credit file closely.

Check that if any of your creditors issued defaults, that these were issued at the correct dates ( and as close to the start of your DMP as possible). Some seem to issue defaults a couple of years later, which is wrong and not good for your credit file.
The defaults will fall off pretty soon if they were given at the start of your DMP.