Poor credit score.

mn93

Last year I got myself into £3000 debt with a 0% credit card. I have never missed a payment, and always paid back the minimum of £25 a month. When the 0% period ended, I decided to get in contact with the charity Step change. I sorted out a DMP and now pay a minimum of £40 back a month which is fine.
What I'm just wondering is, even though I pay back something each month on time, would my credit rating still have been affected due to starting a DMP?

Thanks.

burlington6

Your score is a useless number nobody uses.

Your credit history is what they will look at

SLZ

So you had a 0% CC with £3,000 that you were paying off on time and at least the minimum without issue? Why did you decide to go for a DMP rather than a new 0% balance transfer card?

Anyway, your credit profile will be affected, sign up to Noddle, Experian or the like and see what it's like.

mn93

I couldn't get a balance transfer card for some reason. I made the DMP because I thought I would get charged too much interest and get in to a lot more debt.

National_Debtline

Hi Mn93,


A DMP is a way to pay less than the contractual minimum rate, so this will likely cause damage to your credit file because it will be marked as either an 'Arrangement in place or DMP' potentially with a default. The debt will either appear for 6 years from the date of default or (if they don't default the account) and mark it as an arrangement then the debt will appear for 6 years from the date the account is settled.


Laura
@natdebtline

SLZ

mn93 wrote: »

I couldn't get a balance transfer card for some reason. I made the DMP because I thought I would get charged too much interest and get in to a lot more debt.

Judging from what you're paying per month now, you could've continued to pay with interest and it'll have been fine however you're now in a position whereby you'll have this negative on your file for at least 6 years which will impact future credit.

If you continue and don't miss a payment it could work out for you in the end.