DRO - Credit Score

Misseh

Well DRO was accepted, Wahoo! Can't wait for the 12 months to pass, am already counting down the days!!

Now that said, I've checked out my credit file and the majority are settled and up to date - except 3 by the debt collectors... Doesn't shock me.
My credit score however is scraping the barrel, wasn't expecting the best score in the world, but to go from 450 down to 130 made me laugh and get extremely worried.
How does one claw back their credit score to a reasonable level? My phone contract is ticking over, as I need this for day to day living.
I've heard of a PAYG credit card where you pay £4.99 a month and it shows as payment made and settled at the end of 12 months. Has anyone else done this? I'm not sure what to do, I'm obviously going to get my credit file cleaned up, make LIMITED searches and save scrupulously.
Any advice? As I'd ideally like to be over this blip in 6/7 years time. I've learnt my lesson the hard way.

National_Debtline

Hello there.

A Debt Relief Order is a formal insolvency measure, as such it will have a notable effect on your credit score. It will stay on your credit file for six years, after which you should see an increase in your score.

The best way to get your credit score up is to ensure that you meet your financial liabilities on time. Your mobile telephone is a great example of this.

I'm not sure about the pre-paid credit card, I'm not able to advise on specific financial products or services. What I must say, though, is that whilst you are under a DRO you cannot borrow more than £500 without telling the lender that you have one. It is probably better to await for the DRO to complete before you start looking at that sort of thing.

If you wish to learn more about credit referencing we have a useful fact sheet on our website:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=05_credit_reference_agencies

Best wishes,

David @ NDL.

fatbelly

Misseh wrote: »

I've heard of a PAYG credit card where you pay £4.99 a month and it shows as payment made and settled at the end of 12 months.

Wait until your DRO is completed, then get one of these cards

http://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards

but always pay in full each month as the interest charges are high.

Misseh

Thanks for your replies,
I will wait until the 12 month period is over and keep up date with payments/credit report etc.

Many Thanks,
M