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    • mollie0690
    • By mollie0690 17th Apr 18, 7:37 PM
    • 2Posts
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    mollie0690
    Debt Management plan and a mortgage?
    • #1
    • 17th Apr 18, 7:37 PM
    Debt Management plan and a mortgage? 17th Apr 18 at 7:37 PM
    Hi - looking for a bit of advice...I have been on a DMP for a few years now i've only got about (£4000) to pay but its had an impact on my credit score. I am currently a student so unable to pay off big chucks of this but I was wondering if there was a way of improving my credit score in the mean time? I see they have credit cards to help people with poor credit but I don't know if this would be the best idea? I want my credit score to improve as my partner and I are looking to get a mortgage end of this year/start of next using the help to buy scheme. I don't want my poor credit history to ruin it for us! Any advice would be greatly appreciated!
Page 1
    • Jaywood89
    • By Jaywood89 17th Apr 18, 7:47 PM
    • 160 Posts
    • 74 Thanks
    Jaywood89
    • #2
    • 17th Apr 18, 7:47 PM
    • #2
    • 17th Apr 18, 7:47 PM
    Iím not an expert so take my advice with a pinch of salt, Iím sure someone with better experience will come along and help.

    You need to speak to a mortgage broker. It should be free for an initial talk.

    As for credit cards, you are a way off from there yet. The most important thing to do is pay off your DMP.

    If you think about it if you were a lender would you want to trust large amounts of money to someone on a DMP? With £4000 outstanding?


    The credit card would come into play once you have paid off the DMP, not to boost your score (which is a made up load of crap!) but to build a good repayment history. Realistically if you paid off your DMP tomorrow then you would still have a way to go to before you would be appealing to high street lenders.

    Thereís always options but you need to be prepared and realistic about your chances
    • Thrugelmir
    • By Thrugelmir 17th Apr 18, 7:52 PM
    • 59,815 Posts
    • 53,171 Thanks
    Thrugelmir
    • #3
    • 17th Apr 18, 7:52 PM
    • #3
    • 17th Apr 18, 7:52 PM
    To improve your credit record. Clear the DMP. Then let time do the rest of the healing. As there's no quick steps to rectify the past.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • fatbelly
    • By fatbelly 17th Apr 18, 8:08 PM
    • 12,700 Posts
    • 9,761 Thanks
    fatbelly
    • #4
    • 17th Apr 18, 8:08 PM
    • #4
    • 17th Apr 18, 8:08 PM
    Find out what's on your credit report. Defaults are there for six years and of course will be viewed negatively. Hopefully you are several years into that already.

    If any entries are 'arrangements to pay' argue that you should have been defaulted after 3-6 missed payments.

    Make sure you are on the electoral roll.

    There is benefit in having a credit card but make sure you pay it off in full each month as you will probably be looking at high apr/low credit limit cards without any very good 0% deals.

    Once your credit history cleans up you will be a much more attractive proposition to lenders.
    • enthusiasticsaver
    • By enthusiasticsaver 17th Apr 18, 8:19 PM
    • 7,073 Posts
    • 15,322 Thanks
    enthusiasticsaver
    • #5
    • 17th Apr 18, 8:19 PM
    • #5
    • 17th Apr 18, 8:19 PM
    I would be wary about taking any credit cards out at the moment just in case you are rejected which will be a big red flag on your record. In fact I think you are not allowed to apply for credit if you are on a DMP.

    You need to wait 6 years from the date of the first default and obviously the DMP will need to be paid off. When does your course finish?

    You will obviously need to be in employment before you can apply.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • mollie0690
    • By mollie0690 17th Apr 18, 8:47 PM
    • 2 Posts
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    mollie0690
    • #6
    • 17th Apr 18, 8:47 PM
    • #6
    • 17th Apr 18, 8:47 PM
    Thank you for all your replies. I will be a qualified mental health nurse this summer so will hopfully be in full time employment by September. So from then I hope you start paying off chucks of my debt to reduce it. I!!!8217;m annoyed I entered into a DPM in the first place but I was younger and didn!!!8217;t think it through! Thanks for all the advice guys !!!55357;!!!56832;
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