www.iva.co.uk

Im nearing the end of my debt management programme and just have one creditor left for a small amount now I will be debt free in 3 months.

A Year ago I couldnt even open a new bank account as I wanted to change from who I am with now but the only one I could get was a basic one so I decided not to change. I applied to a few different places.

This week as I am coming to the end of the debt programme I decided to check my credit report with experian. I have 3 defaults which are to be removed in May 2009 and February 2010. And 3 satisfied ones which show I have been making payments and they have the green 0's on them for 12 months showing ive not missed any payments. My credit score with experian is 845.

Would it be worth applying for credit now and also opening a bank account elsewhere or am I likely to still be refused?

According to the site it said my credit score was fair and I kind of thought it would be appalling. Also on my credit report the was no information as to my current account which I thought there would be as a couple years ago I went over my overdraft limit a lot and got charges etc.

Many thanks.

David

Well if you really need to have credit then yes. However why do you want credit? You have managed without and you have virtually settled all that you owed.

Well I dont want credit as such. I want the option of credit. I would like a credit card for emergencies and for things which you need one for, ie hotels and such where they dont take maestro.

So the defaults from 4-5 years ago arent gonna stop me from being turned down?

You won't know for sure until you apply (obviously after you have finished the DMP) If you do take credit again via a card for example, then using it sparingly and paying it off in full each month to avoid any interest will be useful, and also help to build up your credit further.

By the way, nice to see a positive post on DMP for a change. Whilst a DMP doesn't carry the same weight as an IVA they are a very good way of clearing debt, if appropriate, and done right they tend to work very well indeed.

Regards.

When the banks do a credit check do they check your credit score or actually check the credit file?

Since the banks first turned me down for bank accounts I did actually apply for a mobile phone contract with three. I got accepted. This is on my credit report also. Do they use the same scoring criteria as banks? If I got through a credit check with them is it likely my credit rating has improved since then?

They will generally check both.

Suppose I just need to wait till May next year when my file is clear to make changes then. I certainly have learned my lesson with regard to getting in debt and something I will never let happen again.

Just hope they dont do another routine credit check at work!

Thanks everyone for the feedback btw its appreciated

Just noticed something else on my credit file :-

It relates to a credit card.

Special Instructioins Indicator - Debt Management programme.
Special Instructions start date - 01/11/2003
Special Instructions End Date - 01/11/2008
Current Balance - £0
Credit Limit - £3000

With my defaults they will be removed next year. Is still going ti stay on my file untill 2014? As if thats the case it would have been better to have let it default wouldnt it?

Also how can I tell what accounts I have that are still active as opposed to not closed? It just says satisfied on the others but would they still be open if its a credit card.

I believe it will come off your file next year.

Cheers for that David. I wonder why since I went on the DMP they dont all go off my file at the same time.

Not 100% on this, but as a DMP is an informal arrangement, I imagine that defaults can be added after you have started the plan.

If this is the case, then they will drop off 6 years from the date of default.

As I say, not totally sure, hopefully one of the professionals will be along to either confirm or otherwise.

It cant default now as they have already been satisfied last year. Just want to make sure that it goes off my file next year as opposed to 6 from now or that will just a kick in the teeth.

On a further note to this. Its with Cahoot and I have been in contact with them and the account is still active with them. They will be closing it in 30 days. Is that the right thing for me to do or is it better to leave it open?