How Long Trust Deed Stay on Your Credit File? Get Removed
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Trust deeds can help people manage their money. However, a trust deed could have an impact on your credit ratings.
A credit agency could use your credit file to access information about your credit history.
I have compiled this complete guide with everything you need to know. It includes FAQs and all the necessary information about how a trust deed could impact your credit score.
What does a trust deed refer to?
A trust deed is a type of agreement made between you and the creditors.
This is when you agree to pay money on fixed intervals for a specific period of time. After that time, your debts will be written off.
What does my credit file represent?
Your credit file represents your financial history.
- Track records of the bills you have paid
- Notices of any missed payment
- How much unsecured debts you have
- Number of times you have applied for a debt in Scotland
- Details of people financially linked to you
- County court judgements
- An overdraft of your current provider
- Personal information including your trading name and date of birth
- In case you have committed to fraud
- In case you have previously applied for a protected trust deed
Authorised and regulated agencies including: Experian, Equifax, and TransUnion keep record of your credit file.
How severely will my protected trust deed impact my credit ratings?
Unfortunately, your protected trust deed could have a severe negative impact on your trust deed. Moreover, this could stay in your credit file for 6 years.
However, usually people who apply have a low score. You might be able to rebuild your score after you have paid off your debt.
You could also find an alternative debt solution. Make sure to speak to your trustee to know what is best for you.
Will my trust deed appear in my credit file?
Yes, your trust deed will appear in your credit file.
A trust deed could occur even after two years of completion, even if your case was dissolved in four years.
In this case, it could be difficult for you to get credit.
Who is responsible for collecting credit reports?
Credit reference agencies are responsible for compiling information about how well you are managing your money.
They also keep a record of the remains on your credit and well you make your payments.
How long does a trust deed stay in your credit file?
A trust deed could remain in your file for approximately 6 years in Scotland. This starts from the date when your trust deed becomes protected.
However, most deeds are completed within a period of three to four years.
Will a DAS affect my credit rating more than a trust deed?
A debt arrangement scheme (DAS) could be used as an alternative debt solution. However, a DAS is intended specifically towards people who are unable to make monthly payments.
Since it is an independent service set, a DAS will enter your name to a public register, which is regulated by the financial authorities.
Credit agencies could use this along with insolvency registers to collect your information.
Hence, your DAS will create a negative impact on your credit ratings.
What will happen if my trust deed ends?
If you have successfully made all your payment, your trust deed will come to an end. In this case all your remaining debts will be written off.
You will receive a letter of discharge from your trustee. This means your creditors can not ask you to make any more payments.
How long does it take to get a mortgage after a trust deal?
Since the trust deed stays in your credit file for approximately six years, it could be difficult for you to get a mortgage.
However, you might be able to get a mortgage deal after your discharge.
I would advice you to seek a professional for more information.
Can claiming insolvency affect my credit report?
Claiming for insolvency could affect your credit report.
Moreover, it could severely decrease your credit rating for as long as it stays in your credit report.
Can you rebuild your credit after a trust deed?
Yes, you might be able to restore your credit rating after a trust deed. However, this is only possible after you have received your discharge certificate.
Rebuilding your credit might not be a quick and easy process. Moreover, the lending terms might not be as favourable as they were before.
In case your home is still in a trust deed, you might not be able to get a remortgage without your trustees permission. This is because a trustee’s interest in your property could continue even after you are discharged.
How do I rebuild my credit rating?
Rebuilding your credit rating might not be as difficult as you think.
Follow these easy steps to improve your credit score:
- Contact your nearby credit reference agencies and get any errors removed from your credit cards
- Check your credit history for any errors
- Carefully examine all your credit card discrepancies and get a copy of your credit report
- Try not to apply for too much credit. In case you get rejected it will be recorded in your credit file. Your credit score might decrease, lowering your overall credit score.
- Make all credit cards and necessary payments on time.
- Cancelling your unused credit and store cards could help improve your credit rating.
Frequently Asked Questions (FAQs)
- Your personal information such as your name and date of birth.
- Your social security numbers
- Your mobile phone number
- Current address and in previous address
- Your current and former place of employment
- Information regarding bankruptcy
It is important to maintain your credit score. This includes making your credit card and other payments on time.
Read this guide carefully. It has all the essential details about how trust deeds can impact your credit ratings in Scotland.
I would suggest you contact your trustee for further expert debt advice.
Feel free to contact us if you feel we have missed out on anything