Credit after DMP
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DigitalDevil
Posts: 42 Forumite
Hey,
Just wondering if Id be able to get some advice. I successfully completed a DMP last year, its now been 4 years and 6 months since I first defaulted and entered the DMP. I have three defaults in total on my credit file from when my financial trouble started back in 2013, Ive now moved past this, paid/settled all my debts and Im back in full time employment.
How long can I expect it to take before Im eligible for credit again?
Thanks a lot,
DD
Just wondering if Id be able to get some advice. I successfully completed a DMP last year, its now been 4 years and 6 months since I first defaulted and entered the DMP. I have three defaults in total on my credit file from when my financial trouble started back in 2013, Ive now moved past this, paid/settled all my debts and Im back in full time employment.
How long can I expect it to take before Im eligible for credit again?
Thanks a lot,
DD
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Comments
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I am still in a DMP with about a year to go and my defaults will drop off in June this year. I have taken out a Vanquis card to cover my monthly works expenses - (I realise that under a DMP you are not supposed to take out credit but really did not want to get into a debate with my employer about not having a cc) - the joke of this - my credit score has actually increased - even with the defaults. I would suspect you will be in the 'sub prime' CC market (like me) until you can prove you can regularly clear the card.0
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6 years is the magic number, after that, defaults disappear, you can then get into debt all over again if you wish.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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As above. Why worry about getting back into debt again? Better to concentrate on trying to save some money.0
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If you just want a credit card and pay it off in full each month, there are plenty of providers who will give you one now.0
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The idea was to obtain a CC to use for my works expenses (I can reclaim my expenses at the end of each month and pay off the CC) I was hoping that this would help rebuild my file with positive usage but when trying for ANY type of credit I simply get refused, today was the third time Ive attempted to obtain a CC (the time before this was in January, and before that August) and I was refused again... not really sure what to do next....
Additionally, Ive been thinking, but four and a half years ago I entered into a DMP and paid back everything I owed... looking back at that now I might as well have gone bankrupt... Im still living with the same restrictions that someone who went bankrupt would but Im the mug who also paid all the money back so Ive paid for my privilege to be refused credit... nvm rant over...0 -
As long as you have defaults you can more or less forget any type of mainstream credit.
You may qualify for high interest credit cards from vanquis and the like.
Personally Id not bother.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
sourcrates wrote: »As long as you have defaults you can more or less forget any type of mainstream credit.
You may qualify for high interest credit cards from vanquis and the like.
Personally Id not bother.
The lines of credit Ive applied for are from subprime lenders and Ive still been refused so I’m guessing its just a waiting game.
So the “six years” thing that everyone quotes is only a part truth as its still going to take several more years to rebuild ones credit file after said six years elapses and the defaults fall off, so we are more likely talking 10 years before Ill be in a position to apply for credit... guess Ill just keep paying upfront for my expenses0 -
DigitalDevil wrote: »The lines of credit Ive applied for are from subprime lenders and Ive still been refused so I’m guessing its just a waiting game.
So the “six years” thing that everyone quotes is only a part truth as its still going to take several more years to rebuild ones credit file after said six years elapses and the defaults fall off, so we are more likely talking 10 years before Ill be in a position to apply for credit... guess Ill just keep paying upfront for my expenses
It does depend on the specific lender, as to how far back in your credit history is relevant to them.
If you have old defaults, they may ignore them, give it 6 months, try again.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
I managed to get a credit card whilst still on a DMP. Yes it's 'frowned upon' but like others I had business expenses from working away and found a CC was a precious tool.
But the question is why would you want to get back in debt after being on a DMP?0 -
I have a couple of home shopping accounts with Next & Studio, H & M
This was within six years
Not looking to get into debt but like ordering clothes etc for the family and stuff for the home and dont want to pay out unless I actually keep it, I ensure I return everything I dont want and 9/10 I pay it off the following payday, or at the very most within two paydays.
I've never gone over £500 with credit during my DMP - which I've just closed.
Have learned a very harsh lesson on money within the past few years and am very careful now
Its a useful tool if you like to shop at home, like me.
Would never go out of my depth with it0
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