DMP - does it ruin your credit rating??

ScorpioLady_2

Sorry, suppose its a stupid question really, but as soon as you go down the route of a DMP is that your credit rating ruined?

(Even though by definition, it is showing you are in a serious plan to 'manage your debt' as opposed to ignoring it)

davek1

In a word yes fraid so

Dave

biglad

What is the case if you are on a DMP but say in 5 years time i will pay off all my debts. will this be looked upon as sorting debt out, or will credit rating still be a joke,

wanted to get a mortgage when im done

rayday2

We have been on a DMP for a year and are remortaging we can't go with a conventional lender it has to be sub prime but our category is near prime and two advisors (didn't like the first one!) have told us in 3 years we should be able to hit the high street.

So yes it does effect but not as badly as IVA or CCJ. But it is possible on a DMP to end up with CCJ it all depends on the creditors you have to deal with. With a DMP its mainly the defaults that impact your credit history.

Crown

Hi. Im in the same position as Rayday with being on a DMP for a Year next month and am currently remortaging. The lender who I found via a broker has got me a a pretty decent rate fixed for 3 years. I Mention this as it is possible to get a mortgage although you we will pay slightly more.

Also after 6 years the defaults should drop fromn the credit file and as long as you keep up with payments then there isnt any reason why you should have problems getting a mainstream mortgage in the future.

Remember that your credit record is mainly for creditors to check your credit worthiness. If you have had a full blown lightbulb moment then it is unlikey that you will want to borrow on credit/store cards. Is 6 years really that long in the scheme of things?

worrygirl

Hi rayday

I am on a DMP with payplan is it really that possible even with payplan dealing with things that you can get CCJ?

Thanks in advance x