This page tells you how getting an administration order will affect your credit rating.
Getting credit
If you have an administration order you may find it difficult getting credit in the short term. This is because the administration order will impact your credit rating.
You may be able to get some credit but you may be charged higher interest rates. This could cause you to get into more debt that you can’t afford to pay.
How will creditors know about the administration order?
Administration orders are registered at the Registry Trust and entered on the Register of Judgments, Orders and Fines. This means it will appear on your credit reference file, kept by credit reference agencies. Most creditors will assess your credit rating and check your credit reference file before agreeing to lend to you.
Will an administration order affect your credit rating in the long term?
An administration order remains on the Register of Judgments, Orders and Fines for six years. When your administration order is finished, the court will change the record on the Register to say that you have paid the debts. This may make it a bit easier to get credit, though you may still be affected.
After six years, the administration order will be removed from the Register and your credit reference file. This means it will no longer affect your credit rating when you apply for credit.
If you pay your debts in full under the administration order you can ask the court for a certificate of satisfaction. This proves your debts have been repaid. It costs £15 for a certificate.
Is an administration order right for you?
If you are going to need more credit in the short term, an administration order might not be the right debt solution for you. A debt management plan might be more appropriate.
However, if you are struggling to pay your current debts, you should try and avoid borrowing more money.