One of the questions we’re frequently asked is how a Scottish Trust Deed will affect your credit down the line, or more specifically how to rebuild DAS has ended.
By entering into a Scottish Trust Deed you agree not to take out or apply for any further credit until after your Trust Deed has been completed and you’ve been formally discharged.
At this point, you will have to rebuild your credit rating as if from scratch.
Generally speaking, you will find it difficult to get credit for at least three years from this point, though this may differ depending on how you go about rebuilding your credit history.
Trust Deed Scotland® is here to help with all your debt problems, and that includes advice on how to rebuild your credit rating. If you need any help or advice when it comes to debt in Scotland, make sure you call Trust Deed Scotland today.
Rebuilding your credit isn’t going to be easy.
You won’t be able to waltz into a high street bank and waltz back out with a brand new credit card on Day One.
Think back to how you first started building credit all those years ago – you’re starting from scratch, so take it one step at a time.
Consider prepaid credit cards
Prepaid credit cards could be a handy way to help you rebuild your credit.
These cards let you put credit on them in advance and spend it anywhere a standard debit or credit card would be accepted.
Since you don’t get credit checked when applying for a prepaid card, the application process is a lot simpler and you’re a lot more likely to have your application accepted.
Remember that a prepaid credit card is just like a prepaid mobile, you don’t have to worry about going over your limit, as you can’t spend what you haven’t already paid for.
It’s also worth remembering that prepaid credit cards come with a fee, so make sure you shop around for one offering the best deals.
Open new accounts and pay them off
Another method that could help you rebuild your credit rating is by opening accounts and paying them off in a timely manner.
Being able to repay new accounts is key to rebuilding your credit, just as is being able to pay off your bills each month.
If you have the option of buying something you need on store credit and repaying it later, give it some consideration. Just make sure you don’t go overboard and bite off more than you can chew by opening too many accounts and spending unnecessarily. Late payments are likely to undo any of the benefits you may have gained to your credit rating.
Use your new accounts in moderation
And while you’re at it, make sure that your payments are above the bare minimum.
Keeping a small positive balance in your accounts can also help.
This may even show up on your credit report as proof that you have a consistent positive payment history.
Keep your balances low
Try to avoid going over your credit limit, and certainly never go over your credit limit by more than 30 per cent.
Creditors may view this as excessive debt which you aren’t likely to pay back, and may cause your credit more harm than good.
By keeping the balance on your cards low you’re more likely to rebuild your credit history a lot quicker.
Consider asking for help
If you don’t qualify for a small loan or credit card on your own, consider asking a close friend or family member to co-sign for you.
Staying current on a car loan or major credit card payments, even at small amounts, can speed up the process of rebuilding your credit in your own name.
Remember when asking people that you shouldn’t be offended if they say no. This can be a big thing you’re asking of them, especially if they’re secretly struggling with debt themselves.
Be patient in rebuilding your credit
It’s going to take some time to rebuild your credit history and for your credit rating to gain momentum.
The whole point of the exercise is to prove that you aren’t relying on credit and loans for survival.
Don’t expect major companies to start lining up to offer you credit because you’ve paid off your Trust Deed – by starting small, staying patient and making timely repayments your credit file is more likely to grow more quickly than if you try to rush the process.
There are no guarantees to help to rebuilding your credit after completing a term of repayment, but by following this advice you’re a lot more likely to get back on track with minimal growing pains.
If you’re struggling with unaffordable debt and relying on credit to get you through, remember that you can call Trust Deed Scotland® at any time.
Our experienced advisors are on hand to offer the help and advice you need today. For life after debt, trust us.