Creditors give information about your payment history to credit reference agencies. This information is known as your credit rating.
Other creditors then use this information to assess how likely you are to repay them when you apply for credit. Some creditors will record that they're receiving payments through a DMP.
How does a DMP affect my credit rating?
If you’ve missed or made late payments to your creditors before starting your DMP, it’s almost certain that your credit file is already affected. Most creditors will report the status of your account each month. If you’re paying less than the original contractual amount, your status will get worse each month.
Your credit rating will not improve while you’re on a DMP.
Credit reference agencies usually hold this information until the debt is settled. If the creditor registers a default on your credit file, this will stay on your file for six years after the date of the default.
If you’d like a copy of your credit file, you can contact the agencies directly:
Will my DMP affect my credit rating?
Your DMP isn't recorded on your credit file.
But because you're making reduced payments this will lower your credit rating. Any default notices or County Court judgments (CCJs) you get will be recorded on your credit file for 6 years, from the date you received them.