Trust Deed and Your Credit Rating

Back to FAQ

The Impact on Your Credit File

A Protected Trust Deed is recorded on your credit file by all three main UK credit reference agencies - Experian, Equifax, and TransUnion. This entry remains on your file for 6 years from the date your Trust Deed started (not from the date of discharge).

During this time, lenders can see that you have been subject to a formal insolvency arrangement, which will make obtaining mainstream credit significantly more difficult.

What You May Find Difficult During the Trust Deed

• Obtaining new credit cards, loans, or overdrafts
• Remortgaging (except where required as part of the equity process)
• Mobile phone contracts (some providers credit-check)
• Renting a property (some landlords and letting agents credit-check)
• Opening certain types of bank accounts

When Does the 6 Years Start?

The 6-year period starts from the date your Trust Deed was registered, not from the date you complete it. Since a typical Trust Deed lasts 48 months, this means your credit file will be clear of the Trust Deed entry approximately 2 years after your discharge.

Rebuilding Your Credit After Discharge

Many people are surprised by how achievable credit rebuilding is after completing a Trust Deed. Steps that help include:

• Registering on the electoral roll at your current address
• Opening a basic bank account if you do not already have one
• Using a credit-builder credit card and paying it off in full each month
• Keeping credit utilisation low on any new accounts
• Allowing time to pass - credit scores improve naturally as the Trust Deed entry ages
• Checking your credit report for errors and disputing any inaccuracies

After 6 Years

Once the 6-year period has passed, the Trust Deed entry is removed from your credit file. From this point, lenders will assess your creditworthiness based solely on your current financial behaviour. Many former Trust Deed holders go on to obtain mortgages, car finance, and credit cards - a clean financial start is genuinely achievable.

Related Guides