Falling into debt can feel like a permanent mark on your financial record. But the truth is, debt doesn’t impact your credit score forever. With the right steps and time, you can take back control and rebuild your credit after debt.
This guide explains how long debt stays on your credit file, what impact different debt solutions have, and how you can start to improve your credit rating again.
How long does debt stay on your credit file?
In the UK, most debt information stays on your credit file for six years from the date of default, settlement, or resolution. This includes:
- Missed or late payments
- Defaults (when a creditor closes your account due to non-payment)
- County Court Judgments (CCJs)
- Formal debt solutions.
After six years, these items are automatically removed from your credit file, even if the debt is still unpaid. Debt may affect your credit for a while, but it won’t last forever.
What happens after six years?
Once a debt marker is six years old, it automatically drops off your credit file. This doesn’t mean the debt is written off (unless legally agreed), but it does mean lenders can no longer see it on your file. That gives you a cleaner slate when applying for credit, renting, or passing affordability checks.
How debt solutions affect your credit file
Debt solutions can help with your debt but what is their impact on your credit file? Does an IVA stay on your credit file? This depends on the type of solution you choose.
This will appear on your credit file for six years from the date it begins. During that time, your credit score is likely to be low, and most lenders will see you as high risk. If you do apply for credit, you won’t be able to get more than £500 without written permission from your insolvency practitioner (IP). However, once the IVA ends and is marked as ‘satisfied’, you can begin to rebuild your credit.
This stays on your credit report for six years from the date it’s approved. While it’s active – usually for 12 months – you can’t borrow more than £500 without telling the lender about the DRO. Once it ends, any debts included are written off, but the entry stays visible to lenders for the full six years.
This remains on your credit file for six years from the date you’re declared bankrupt. Even after you’re discharged (normally after 12 months), it will still be visible on your report until the full six years are up. You must inform the lender if you try to take out more than £500 of credit or any amount before being discharged.
A DMP works differently. It’s an informal debt solution so isn’t listed as a single entry on your credit file. As DMPs reduce monthly payments to make debts more manageable, customers are unlikely to pay the full contractual amount. If payments are missed or are lower than agreed in the DMP, this can be recorded on your credit file and may remain there for up to six years from the date of default. Some creditors may add a DMP or ‘arrangement to pay’ marker for payments made through your DMP.
In all cases, completing a debt solution responsibly shows future lenders you took control of your situation and once the entries are removed, your credit profile can begin to recover.
Will my credit ever recover?
Yes, your credit can recover. It takes time and consistent effort, but recovery is absolutely possible, even after serious debt problems. Most people begin to see improvements in their credit score 12 to 24 months after resolving or settling debts.
How to rebuild credit after debt
Once your debts are settled or under control, there are practical steps you can take to start rebuilding your credit profile. Here’s how:
- Check your credit report
Visit all three UK credit reference agencies (Experian, Equifax, and TransUnion) and check your reports for errors. Dispute any inaccurate or outdated information. - Register on the electoral roll
Make sure your name and address are listed. It helps confirm your identity and can improve your score. - Use a credit-builder card
These cards are designed for people with poor or limited credit history. Use one for small purchases and repay in full each month to show responsible borrowing. - Make payments on time
Whether it’s a phone bill or utility account, consistent on-time payments help show lenders you’re reliable. - Avoid applying for too much credit
Each application leaves a mark. Too many applications in a short time can lower your score.
What if your credit file still shows old debts?
After six years, debts should no longer appear on your file. But errors can happen. If something looks wrong:
- Contact the credit reference agency directly
- Provide any evidence (e.g. settlement letters or final statements)
- Raise a complaint if needed to have it corrected
You can also contact the lender to request removal if a default is older than six years but still showing.
Will future lenders see my past debt?
Lenders will only see what’s currently on your credit report and most debt markers disappear after six years. Some mortgage providers may ask if you’ve ever had an IVA, bankruptcy, or CCJ, even if it’s not on your file anymore. Be honest, but know that many people go on to get mortgages after past debt.
Take your next step today
Debt doesn’t have to define your future. Your credit report is just one part of your financial picture and with time, effort, and the right guidance, recovery is not only possible but highly achievable.
For free debt advice, visit MoneyHelper. Alternatively, contact a MoneyPlus adviser today and take the first step toward regaining control of your financial future. Let’s work together to help you rebuild, one step at a time.
