How to restore credit rating after Scottish debt programme has been satisfied

  • John Baird -
  • 5th March 2018 -
  • 2 minutes to read

A debt payment programme (DPP) remains on your credit file for six years, along with other default markers and court judgments that have been made against you. This can seriously affect your ability to borrow for this period of time, and longer.

Even if you can secure borrowing, lenders are only likely to offer unfavourable terms, including high interest rates. Others may refuse borrowing until your credit rating improves, so what can you do to rebuild your credit score and demonstrate financial stability?

Check your credit file

You need to check that all the information is correct and up-to-date on your credit file, and that your debt payment programme has been marked ‘satisfied.’ You can add a ‘notice of correction’ to incorrect entries if necessary.

Make sure you’re on the electoral register

Being on the electoral roll confirms your home address to lenders and credit reference agencies, and gives them more confidence to lend. You can do this by contacting your local council.

Credit builder and prepaid credit cards

It may seem counter-intuitive, but using credit can lead to a better credit score – you just have to use it in the right way. Specialist cards called credit builder and pre paid credit cards exist, but should be used very carefully.

Credit builder credit cards have high interest rates, which increase considerably if you miss a single payment. The best way to use them is to make one small purchase each month – fuel, for example – and then pay the balance off in full without fail. Doing this regularly over time sends a message that you can control your finances, and that you present less of a risk to lenders.

Similarly, pre paid credit cards can be useful if you’re not able to secure a credit builder credit card. In this case you add money to your card, and must pay the monthly fee on time to ensure that positive feedback is sent to the credit reference agencies.

Use direct debits to pay regular bills

Paying your regular bills on time is an effective way to rebuild your credit score. It’s a good idea to set up direct debit payments for household expenses, and also to pay the minimum payment on your credit card. Although you should pay the balance off in full as we mentioned earlier, setting up a direct debit to pay the minimum is simply a precaution that can help you avoid default.

Be careful with joint finances

The poor credit score of a spouse or partner can harm your own situation if you’re financially linked. If this is the case it may be a good idea to avoid joint finances if possible, in order to boost your own credit rating.

Scotland Debt Solutions can offer more advice on how to boost your credit rating following a formal debt procedure. We’ve been helping Scottish residents to escape debt since 1989, and can offer you a free same-day meeting to discuss your needs.

John Baird
John Baird
Partner
About

Why Choose Us

Speak Direct With
Speak Direct With
A Qualified Adviser
We Dont Operate
We Dont Operate
Call Centres
5 Offices in Scotland
5 Offices in Scotland
National Coverage
Ask us About
Ask us About
We Do Home Visits
Fully Regulated Advisors
Fully Regulated Advisors
From a Reputable Firm
Helping Scots Get
Helping Scots Get
Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

When should we call?
Can we leave a message?
Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.
Tools

Useful Tools

Personalised Debt Report

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Free Scheduled Call

Free Scheduled Call

 Arrange a call with an expert advisor at a time to suit you.

Find a Local Office

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Close Menu Share with a Friend

Send this page to a friend

via Whatsapp via Messenger via Messenger via Email
Make sure you have WhatsApp installed.

Copy link to clipboard
Close