Debt Management Plans. Credit Scores & Reports. StepChange (2024)

DMPs and rental agreements

Current tenancies

Your current landlord may not be told about your DMP.

Rent is a ‘priority payment’.You should try to:

Pay your rent in full, outside your DMP
Arrange to make payments you can afford to any rent arrears

New tenancies

Starting a new tenancy on a DMP may be difficult. Some landlords check your credit file.

They may not accept you if you have missed payments or defaults
Landlords can only access your credit file with your consent
They need you to sign a consent form first

Not all landlords perform credit checks.

Social landlords are less likely to look at your credit history, like:

Local authorities
Housing associations

Smaller private landlords and letting agents might not use CRA information. Some will check public records.

DMPs and mortgages

Taking out a new mortgage

It is hard to get a new mortgage on a DMP if you do not own a property.

Debts do not look good in a mortgage application.

Debts on your credit file could count against you
Not having a lump sum deposit is a problem too

Remortgaging

It may be harder to remortgage on a DMP.

There may be some options open to you. This depends on how long you have been on the plan.

If your mortgage deal expires:

Your current mortgage lender will usually offer their ’standard variable rate‘
This is likely not the best deal on the market
But it means your mortgage can carry on with your current provider

Whether you can get a new deal depends on a few things:

How much negative information is on your credit file
How much equity is in your property
Your current income

Get qualified mortgage advice if you need help remortgaging while on a DMP.

Learn how a DMP may affect your mortgage, rent or tenancy.

Car insurance and DMPs

If you make monthly car insurance payments:

There may be credit checks when you sign a new agreement
Your car insurance could be cancelled if you do not keep up payments
Lenders offering these credit agreements are likely to refuse you

Very few of our clients have problems getting car insurance although:

You may not pass a credit check on a DMP
You may be charged a higher rate of interest
Monthly payments could be higher

Find out more about interest and charges.

Mobile phone contracts

Keep your mobile phone costs low if you are on a DMP.

With new mobile phone contracts:

You may be credit checked
You may be rejected for expensive phones with high costs
You are more likely to be approved for cheaper handsets with lower costs

Not sure if you can afford your current mobile phone contract?

Utility bills

Some companies run credit checks.

This might happen if you apply to change from a pre-payment meter to a credit meter paying monthly or quarterly.

Find out how to get help with and save money on utility bills.

Can I get credit while I am on a debt management plan?

Do not take out any more credit while trying to repay existing debts through a DMP. This risks breaching the terms of your plan.

Your budget should cover all costs that might crop up on a DMP so you do not need to borrow.

Speak to your DMP provider if you have an unexpected high expense.

They can check if there are options other than borrowing more
You might be able to:
Reduce your plan payments or
Apply for a grant

The lender will run a credit check if you do need to take out a new credit agreement.

You may be charged a higher interest rate
You may be refused

Do not consider a debt consolidation loan if you are on a DMP.

Can my DMP affect the people I live with?

Your DMP only affects people you have joint debts or financial products with. This includes:

Loans
Bank account
Household bills that are in joint names

A ’financial association' links your credit files. This means your record of making reduced payments may affect:

The other person’s credit file
Their ability to get credit