Debt Arrangement Schemes and Credit Ratings – How Are They Affected?


A lot of things we take for granted today revolve around having a decent credit rating and opting for DAS could knock it into next week! But if you’re suffering under a burden of debt that is threatening to overwhelm you, opting for the Debt Arrangement Scheme may be the best move you could make under the circumstances.

Just why credit is reports so important?
You may find that once all of this is taken account and applied to your current situation, it tips your credit rating past the point where a lender wants to lend money to you. So without realizing, your credit rating may already be affected and you already considered a poor risk. It could take only one thing to cause you to default on a payment and from then on your credit record will reflect that you are in financial trouble and the lenders will start to refuse any further credit applications. Each credit application that is turned down will be a black mark on your credit record. This is often the point where most people start to look into debt solutions like the Debt Arrangement Scheme.

What about after the Debt Arrangement Scheme?
You’ll be raring to get your life back on track once you’ve paid off all of your debt on the Debt Arrangement Scheme, but there is one last thing to overcome: building your credit rating back up again. You’ll find it very difficult to get any credit for a while depending on how long you are focus on what is a debt arrangement scheme? Most black marks on your credit file take three to six years to drop off, but there are a few things you can do to improve your credit and make you seem attractive to lenders once more:

Never miss a payment
Live by the mantra “if it can happen, it will happen” to anticipate problems in advance, as credit agencies will still log any mistakes on your file, even if they were not your fault. Set up direct debits and standing orders well in advance pf payment dates to make sure they are cleared. Keep a monthly eye on payment dates, especially those payments taken every 28 or 29 days.

Get a credit card and use it very wisely
Used properly, a credit card can help build up your credit record. Each time a payment is made, a good credit ‘event’ is added to your file. Use the card ONLY to pay for one small shop or some petrol every month and pay it off in full. It may be that only pre-paid cards or those with high rates are available to you, but as you won’t be carrying a balance this doesn’t matter. All that matters is those little good credit events being added to your file.

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