1 yr after DRO

AG47 · 26 January 2016 at 3:20PM

Can I apply for a loan after 1 year anniversary of dro?

wba31 · 26 January 2016 at 3:58PM

You can apply for a loan during the moratorium period if you wish. the only restriction is that if you are applying for more than £500 you must notify the lender of your Debt Relief Order.
Once the moratorium period has ended this rule does not apply

National_Debtline · 26 January 2016 at 6:27PM

Hi

Although you can apply for a loan the DRO will be on your credit reference file for 6 years from when you started it so you will probably find it difficult to take out credit with a reasonable interest rate.

James
@natdebtline

Electrum · 28 January 2016 at 10:59AM

wba31 wrote: »

You can apply for a loan during the moratorium period if you wish. the only restriction is that if you are applying for more than £500 you must notify the lender of your Debt Relief Order.
Once the moratorium period has ended this rule does not apply

National_Debtline wrote: »

Hi

Although you can apply for a loan the DRO will be on your credit reference file for 6 years from when you started it so you will probably find it difficult to take out credit with a reasonable interest rate.

James
@natdebtline

So the lender will easily see the DRO, there is no need to inform them?

When is the moratorium period? Is that the next 5 years after the first year?

I read somewhere that lenders will lend easier than most think after a DRO, because they know you cant do another one for 5 years or so.

wba31 · 28 January 2016 at 11:36AM

Electrum wrote: »

So the lender will easily see the DRO, there is no need to inform them?

When is the moratorium period? Is that the next 5 years after the first year?

I read somewhere that lenders will lend easier than most think after a DRO, because they know you cant do another one for 5 years or so.

Irrelevant of what the lender may see, they may not see. The rules of the DRO is that while in the moratorium period, you must inform a lender of your DRO if borrowing more than £500.

The moratorium is the 12 months of the DRO, date of approval - end of DRO/debts written off.

Electrum · 28 January 2016 at 11:53AM

wba31 wrote: »

Irrelevant of what the lender may see, they may not see. The rules of the DRO is that while in the moratorium period, you must inform a lender of your DRO if borrowing more than £500.

The moratorium is the 12 months of the DRO, date of approval - end of DRO/debts written off.

Thanks so the moratorium period is the 6years after your approval date?

What is the truth about lenders thinking you are more of a sure thing near the start of your 6 years period than nearer the end, since you cant do another DRO until after 6 years?

wba31 · 28 January 2016 at 1:07PM

Electrum wrote: »

Thanks so the moratorium period is the 6years after your approval date?

What is the truth about lenders thinking you are more of a sure thing near the start of your 6 years period than nearer the end, since you cant do another DRO until after 6 years?

The moratorium period is 1 year only. It starts the day the Insolvency Service approve a Debt Relief Order.

The only official 6 year period with a DRO is a time until you can apply for another.

With the credit report, anything that goes on, comes off after 6 years, but this is true for all debt issues, not just DROs.

Creditors will simply look at credit scores on the ability to repay. If they rejected credit to someone because they may apply for a DRO again would mean they'd never lend to people who have never had a debt issue? Different creditors will offer services to different people. some will just charge more.