Can I get credit during a DMP?

A DMP is informal, so there's no legal limit on borrowing — but the marker on your file makes new credit harder and pricier. Here's what's actually allowed, what lenders see, and when it's worth waiting.

No legal limitBut harder to get
Start your Comeback Plan

Free to use, no obligation — and a soft search won't affect your credit score.

Written by the AfterMy team · Reviewed by Ben Miller, Customer Success Manager

Last reviewed: June 2026

Quick answer

Yes, you legally can. A DMP is informal, so unlike an IVA there is no £500 rule and no one's permission to ask for. But it is harder and more expensive in practice, because the DMP shows on your credit file and lenders see reduced payments. Most providers advise against new credit while you are on a plan, and for good reason.

On this page

The short version

A debt management plan is an informal arrangement, not a form of insolvency. That is the key difference from an IVA. There is no legal restriction stopping you from applying for credit, no £500 limit, and no supervisor whose permission you need. You are free to apply.

Key point

The catch is what lenders see. Your DMP usually shows on your credit file, often as an arrangement to pay marker or a note that you are paying less than the original agreement, alongside any missed payments or defaults that led to the plan. To a lender that signals recent difficulty, so approvals are harder to come by and the credit you can get tends to be expensive.

Why providers usually advise against it

Most DMP providers will tell you not to take on new credit while you are on a plan, and the reasoning is sound. Your plan is built around paying what you can afford after essentials. Adding a new monthly payment puts pressure on that budget and can knock you off track, which risks the priority bills that matter most. There is also the cost. Because your file shows recent trouble, the credit available to you is usually high interest, and taking on expensive borrowing while you are clearing debt is a step backward.

When borrowing might be necessary

Life happens, and sometimes credit is genuinely needed, such as replacing a car you rely on for work. If that is the case, the sensible first step is to speak to your DMP provider. They may be able to adjust your plan to help, and they can talk through whether the timing makes sense. Car finance is the most common example. Because a vehicle is often a real necessity, hire purchase can sometimes be arranged through specialist lenders who work with people on a DMP, though at higher rates than mainstream deals. Shopping around matters if you have to go ahead.

What helps your file while you are on a DMP

You do not need new credit to make progress. Sticking to your DMP payments, keeping every other bill on time, and staying on the electoral roll all build a steadier picture. A well-managed DMP can actually look better to future lenders than the missed payments that came before it, because it shows you are dealing with things responsibly.

What changes when your DMP ends

A DMP is flexible. You can adjust or end it at any time, and it finishes when your debts are cleared or when you can resume full payments. Once your debts are marked settled or satisfied, your credit file starts to recover, and the steps you take to rebuild from there are what move you forward. That is what AfterMy is built for, helping you work out what to do first, in what order, staged around your own dates.

Reviewed byBen Miller — Customer Success Manager, AfterMyMore about Ben

Frequently asked questions

Is there a credit limit during a DMP like the £500 IVA rule?
No. A DMP is informal, so there is no legal credit limit and no permission to ask for. The limits are practical, not legal.
Will a DMP show on my credit file?
Often yes. Creditors may add an arrangement to pay marker or a note that you are on a DMP, and any missed payments or defaults will show too.
Can I get car finance on a DMP?
Sometimes, usually hire purchase through a specialist lender, and often framed around an essential need like getting to work. Expect higher rates and speak to your provider first.
Does applying for credit hurt me during a DMP?
A run of applications and declines can set you back. Checking eligibility with a soft search first avoids leaving marks for nothing.
Should I wait until my DMP ends?
Usually yes. New credit adds strain to a budget already built around what you can afford, and waiting lets your file start recovering first.

Still on your DMP?

You're in the right place. There's plenty you can do now to keep your file moving in the right direction.