DRO application submitted - allowed to apply for new credit now?

Alrighty36

I’d ideally like to have a credit card for real emergencies (eg for gas / food), with a minimal limit eg £200. Hopefully will never need to use it but at least I’d have a safety net.

am I allowed to apply even though I have  submitted a DRO application? 

Or if I have to wait until the DRO is (hopefully) accepted, can I apply for a new card immediately the same day? 

Thank you 

sourcrates

Emergencies are catered for by regular savings from your monthly income, applying for further credit when in/or applying for a DRO is not advised, and could result in extension of your arrangement.

"Or if I have to wait until the DRO is (hopefully) accepted, can I apply for a new card immediately the same day?"

Your last sentence suggests you are unaware of the severity of your situation.

I would suggest you have a long discussion with your DRO intermediary, before you do anything else.

fatbelly

You won 't be paying anything to your debts now and should not have been doing durig the lead-up to your dro.

You should have a positive balance in your bank account particularly as elec and gas usage are at a low point for the year.

The dro rules allow £2000 of savings, assets, to cover emergencies.

Technically the rules say that you can apply for credit but i will post a link to the full details for you so thst you can see the dangers of doing so

https://www.gov.uk/guidance/how-to-get-a-debt-relief-order-dro#restrictions

Sonic101

Hi there

Fatbellt has given some excellent advice but I thought I’d add my two cents’ worth as someone who had a DRO.

Making regular payments to a credit card can help you rebuild your credit history so in six years’ time when the DRO falls off your credit history you will already have a ‘positive’ credit record.

Aside from the pitfalls fatbelly has mentioned, you have to be very disciplined with yourself. I have a credit card which I pay in full every month - I just put stuff on it that would usually go on my debit card, keep the money I would have spent in my bank account, then use it to pay the credit card as soon as the bill comes in - but I have to admit that the temptation to ‘just’ treat myself to a takeaway, or a few items I don’t really need/can’t really afford in a sale, is almost overwhelming at times. I’m not planning to fall down that rabbit hole again, but it ain’t easy…

I know all that probably  sounds pretty obvious, but maybe something to think about….

StevenB12

I'd avoid any credit applications during your DRO. I've been out of my DRO for about 8 months or so now, and only recently been offered opportunities to apply for two credit cards with Zopa and Capital one, any other form of credit will be almost impossible to secure, and that's not a bad thing. 

As others have said, you should be able to save a bit up to allow for any emergencies due to your outgoings being a lot less once your debts cease to exit your account. 

Be very careful, as it can be extremely easy to slip back down the road that leads to more debt. 

Good luck.