End of the DMP

Varnam

Hi Everyone.

I am just getting to the end of a DMP and my last payment is November the first. Whilst I’m glad I’ve hit that milestone and debt free is in sight , I do want to start building my credit. Can I apply for a credit building card now to give myself a head start? I am wanting to build my score back up for a mortgage. Last default date was 09/2018

37k down. 2.5k to go! 

EssexHebridean

Well done on nearing the end of your DMP.

My advice on the card would be to hold back on this for a while - finally being debt free can be a bit of a rollercoaster for many people, and your first priority might be best off being learning to budget without debts to clear, and to save the money you were previously paying towards debt. If you are determined to get a card, then immediately set it to clear [Martin voice on] "IN FULL!" every month, and use it ONLY for a specific purpose - perhaps putting fuel in the car, or your main weekly shop - which should keep you working to a budget. Also - slightly pedantic but also quite important. Your credit "score" means nothing - it's your credit history you need to start building - and that is a slow, patient process. If you remember the lessons learned from the DMP though, you can do it. 

SusieT

Echo everything above by EssexHebridean, I would not even think of applying until at least March next year (September even better) at the earliest so that you have a few months to learn to save the DMP payment instead of spending it, Christmas will be a huge temptation to spend rather than save so by March you will (hopefully) have got through that and have been putting the majority of the DMP money into savings, your credit history will be looking better with defaults being 3.5 years old by then. The offers will improve the longer you wait, and there is plenty of time to get a card before you are getting a mortgage if you are going to wait for the defaults to go and to save a good deposit. 

Varnam

Thankyou both for your replies and advice, I really do appreciate it! I will take it onboard.

it’s been one hell of a journey but to know the end is in sight is so relieving. Budgeting lessons will absolutely be taken forwards now after the DMP. And I really do have to commend stepchange for everything they do too.