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How will a DRO affect me

Debt relief orders. DROs and your credit score

A debt relief order (DRO) can write off your debts if you have a low level of debt and few assets. It affects your credit score while it is in place and for up to six years after it is approved.

What is a DRO?

A DRO is a debt solution that:


  • Stops debt repayments for 12 months
  • Stops interest for 12 months
  • Writes off debts if your situation does not improve

This is for all debts included in the DRO.

Use our free online debt advice tool to find out if a DRO is right for you. There may be other debt solutions if it is not.

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Considering a DRO?

We can help with free, impartial debt advice online now.

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How does a DRO affect my credit score?

A DRO stays on your credit file for six years from the date it is approved. This makes it harder to take out credit.

Lenders have their own ways of interpreting your credit score:


  • Some rate your recent history more highly
  • Some do not lend to anyone who has ever had a default

While on a DRO:


  • You cannot take out more than £500 in credit without telling the lender about the DRO
  • They may not want to lend to you because of it

A DRO is viewable on the public Individual Insolvency Register.

Can I get a DRO removed from my credit file?

You cannot get a DRO removed from your credit file.

Your credit file is updated when the DRO ends.


  • It is shown as 'discharged'
  • The DRO period is usually 12 months

Let the credit reference agencies know if your credit file has not been updated.

Check that the accounts included in your DRO are marked as:


  • 'Satisfied', or
  • 'Partially settled'

You can apply for a ‘notice of correction’ if you got a DRO for reasons outside your control.


  • This is a short statement of up to 200 words that you send to the credit reference agencies
  • Ask them to make the statement available to potential creditors
  • Creditors may take this into account when deciding to lend to you

How can I improve my credit score after a DRO?

Improving your credit score can take time, but you can do it.

Make sure that:


  • You keep up with all agreed payments on your debts, including:
    • Mobile phone bills
    • Credit cards
  • All the details on your credit score are correct, such as where you live
  • You register on the electoral roll where you live

There are some credit cards for people with bad credit scores. Read about what to consider before applying for one.

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Considering a DRO?

We can help with free, impartial debt advice online now.

Get debt help

How else might a DRO affect me?

There are a number of ways a DRO could affect you.

Bank accounts

It can be harder to open a new bank account during and after a DRO.

Your bank will not automatically know you have started a DRO. Unless they are listed as people you owe.

Some banks check to see if their customers have a DRO. If you bank does find out, they will decide whether to:


  • Freeze your account, or
  • Let you open a new one

Renting

Many private landlords and letting agencies require a credit check when you apply to rent a home.

A DRO will show up when they run their check. You may:


We can help you understand your rights if you are treated unfairly during your DRO.

How do I check my credit score?

Some credit reference agencies offer a free trial to access your credit score.

Get free debt advice

Use our online debt advice tool to find out if a DRO is right for you. Other solutions may be better.