Dro and its long term effects

Shaunw1987

Hi I'm in the process of applying for a dro and wanting some advice on its long term effects I understand that after 12 months the dept is cleared the dro stays on your record for 6 years and has a big impact on your credit rating but how much of an impact does it have will it effect me renting or buying a house in the future and is it possible to improve my credit rating once the dro is completed or will my credit rating be rock bottom for the next 6 years any help would be greatly appreciated. 

sourcrates

Same as any other debt solution, after 6 years it’s gone forever, others manage to rent, may need a bigger deposit, ratings don’t exist, only history.

[Deleted User]

8 years on from when a DRO was taken out. Can and have only ever achieved sub prime credit. There is no easier credit. Never brought a house - very fortunately my parents helped massively after 10 years renting so I'll never get to find out. Job front in certain sectors not so pleasant either, even in the month leading up to 6 years I could still be told to jog on. Low point was after finally getting to work for a company 'simply because the DRO had dropped off' yet someone working it out and saying prison or bankruptcy. I'm a single person. It might be quite different in coupledom. Good points - it never made me want to claim, and I now work directly for a company with a history of bankruptcies (various reasons) and coming back from it, being strong and aware because of it.

MalMonroe

Deleted User said:

8 years on from when a DRO was taken out. Can and have only ever achieved sub prime credit. There is no easier credit. Never brought a house - very fortunately my parents helped massively after 10 years renting so I'll never get to find out. Job front in certain sectors not so pleasant either, even in the month leading up to 6 years I could still be told to jog on. Low point was after finally getting to work for a company 'simply because the DRO had dropped off' yet someone working it out and saying prison or bankruptcy. I'm a single person. It might be quite different in coupledom. Good points - it never made me want to claim, and I now work directly for a company with a history of bankruptcies (various reasons) and coming back from it, being strong and aware because of it.

This is very weird. I started my DRO in 2013 and it all dropped off my credit report as promised and went away last year. Since then, I've been able to apply for credit with absolutely no problem whatsoever and I'm about to start looking for properties to purchase. I'm not in a couple and have just also launched my own small business. In fact, about three years in to the DRO I applied for and received one of those credit cards for debtors. I made sure I used it but paid it off in full every month, so never paid interest. And then I was upgraded to a better card. Even before the DRO finished. I also was granted a loan for a car, still during the DRO period (after the first 12 months, obviously). 

Nobody, now the DRO has gone, has guessed anything about my financial status, and why would they? I'm amazed that my status now is the same as it was when I was financially secure (before the divorce). 

Best thing I ever did, my DRO. It was a bit rocky for a while but now I'm free to get on with my life. Don't understand this doom and gloom!

MalMonroe

P.S. I have just received notification that I am now a MoneySupermarket Stalwart. So that might help? Anyone? 

MalMonroe

sourcrates said:

Same as any other debt solution, after 6 years it’s gone forever, others manage to rent, may need a bigger deposit, ratings don’t exist, only history.

No you don't need a bigger deposit, you can buy or rent property, as you wish - and history doesn't exist on your credit report either. Nobody knows, nobody can judge any more, once it's dropped off your report. I know these things because I've been there. And survived.