Going on a DMP... Should I maintain One Credit Card?

wishiwasnthere

I have fought long and hard to try and keep our heads above water but I have come to the realisation that my wife and I cannot continue to struggle the way we have been doing.

So, we have made the decision to start a DMP and have spoken to StepChange who suggested a token payment plan.

Now, I know doing this is going to completely trash both our credit files and we never want to see another credit card or catalog account again, but we may need to remortgage at some point in the future so we are hoping that our credit accounts default as early as possible so that we can repair them quicker.

What I would like to know is, is it worth my wife and I both maintaining one credit card each? I have a Nationwide credit card with a low APR and my wife has a Capital One credit card with a rubbish APR but I was thinking it might be worth maintaining these to help rebuild our credit files.

I know StepChange aren't keen on us doing this because they feel it would be unfair on other creditors but I just feel like it's about time I think about what's best for us now, instead of worrying about upsetting the creditors.

Any thoughts?

thebritishbloke

If you're doing that, other creditors might not accept your token payments that you offer.

stator

What if you kept one credit card with a zero balance, there would be no need to default it and no-one would get upset. Then after the dust settles you can use it responsibly. I don't know if it would work but it's just an idea

mjm3346

The card/s you hope to keep may close your accounts anyway when the defaults/dmp etc hit your credit files.

wishiwasnthere

Thanks for the replies.

I wouldn't be in a position to reduce one of the cards to a zero balance unfortunately otherwise that would be a good option and as you say would keep other creditors from getting upset.

I wasn't aware that a DMP was recorded anywhere on a credit file, other than the accounts going into default.

I wouldn't have thought an account could be closed if I don't default that particular account?

thebritishbloke

It won't specifically say "DMP" on your credit file, but it will more than likely show all your accounts being defaulted and AP (arrangement to pay markers) on all of them. This would be presumed to be a DMP by most.

wishiwasnthere

thebritishbloke wrote: »

It won't specifically say "DMP" on your credit file, but it will more than likely show all your accounts being defaulted and AP (arrangement to pay markers) on all of them. This would be presumed to be a DMP by most.

From what I've read it will either show default or AP, not both on the same account. I guess it depends if the card issuer checks my credit report on an ongoing basis or not.

so_very_confused

thebritishbloke wrote: »

It won't specifically say "DMP" on your credit file, but it will more than likely show all your accounts being defaulted and AP (arrangement to pay markers) on all of them. This would be presumed to be a DMP by most.

Some creditors do put DM on credit file.

Thrugelmir

A credit card isn't going to repair your credit file. Only time will.
Do yourself a favour and kick the credit habit totally. As you won't be remortgaging for a while.

mjm3346

wishiwasnthere wrote: »

I wouldn't have thought an account could be closed if I don't default that particular account?

You don't have to default for accounts to be closed/credit limits reduced, it can happen if it looks like you are over commited or sometimes just because cards are not being used etc.