Your credit score breakdown for when a Trust Deed ends

Are you approaching the end of your Trust Deed or have you recently completed one? If so, you might be wondering what comes next. When you check your credit report and score, are you asking whether what you're seeing is right?

This guide will help you understand what happens to your credit history when a Trust Deed ends in Scotland. 

What’s the difference between a credit report and a credit score?

Your credit report is a record of your borrowing history and personal details like address or electoral roll registration. It contains information about credit you’ve had and how you’ve managed repayments in the past.

Your credit score is a number calculated using information from your credit history. It gives you as the consumer an idea of what your credit health looks like to lenders.

Experian, Equifax and TransUnion are the three main UK credit reference agencies (CRAs). Each uses its own scoring system, so the score you see can differ depending on which CRA you check.

Here’s another useful distinction: lenders don’t simply look at the credit score you see online and make their decision from that number. They look at information from your credit history alongside their own lending criteria and internal scoring systems.

So if your score isn’t where you hoped it would be after your Trust Deed, just know that it should improve gradually if you’re careful with your repayments, and follow the tips we include in these guides. 

Does credit reporting work differently because I’ve had a Trust Deed?

Your credit information continues to be reported in the same way as everyone else’s. 

When you entered into your Trust Deed, it was recorded on your credit report. It would have had a negative impact on your score because the unsecured debts listed within your Trust Deed will show that you defaulted on your payments. 

Your credit report will continue to show the unsecured debts listed as part of your Trust Deed after you receive your letter of discharge. 

The accounts included in your Trust Deed should show a zero balance and appear as “settled” or “satisfied”. You may also see an account described as “partially settled” or “partially satisfied”. As long as the balances are listed with nothing owing, the remaining debt has been written off. 

How does a Trust Deed affect my credit history?

Think of your credit report as a history, not a snapshot. Your Trust Deed forms one part of that history. Your credit report will show your previous repayment record from the last six years, and any financial information which includes bank accounts, utility accounts, phone contracts etc.

Details of your Trust Deed are also recorded on Scotland’s public Register of Insolvencies, which is overseen by the Accountant in Bankruptcy (AiB).

Your credit history will include your Trust Deed for six years from the date the arrangement is registered. This can make it more difficult to access products such as loans or mortgages during that period. Discharge is the formal conclusion of your Trust Deed.  When you’re discharged, your credit history still needs time to reflect what happens next. 

What happens to the Register of Insolvencies?

Once you've made your final payment, your Trustee submits an application to the AiB requesting your discharge. Once it's granted, your creditors will not be able to chase you for any money owed to them before you signed the Trust Deed.

Your discharge will stay on the Register of Insolvencies for 12 months, after which point it's automatically removed.

Provided you've kept to the terms of your agreement, any remaining unsecured debt connected to your Trust Deed is cleared for good.

Why is my credit score still low after a Trust Deed?

Completing a Trust Deed and rebuilding your credit history are two different things. 

A Trust Deed stays on your credit report for six years from the date the arrangement begins.

Notice that wording: it’s six years from when the Trust Deed begins, not six years after you’re discharged.

Because a Trust Deed will usually involve contributions for at least four years, it will continue to affect your credit score for a period after you’ve been discharged. After the Trust Deed disappears from your credit report, your credit score may begin to move upwards slowly around this point.

Look beyond your credit score

Check your credit reports with the three main credit reference agencies (CRAs): Experian, Equifax and TransUnion. As each agency reflects your data slightly differently, it’s possible for there to be an error with one and not with the others.

You can access your statutory credit report for free. Alternatively, you can also access your credit score and additional reporting features with credit partners such as ClearScore (using Equifax data) and Credit Karma (using TransUnion data). Experian also has a free 30-day trial for you to access their full credit reporting features with CreditExpert. (Just remember to cancel before your subscription renews to avoid paying the £14.99 per month charge.) 

When you have your reports in front of you, look for:

• Personal information (e.g. current address) errors
• Accounts or details that haven’t been updated
• Balances that should now be zero
• Incorrect default dates
• Financial links to another person (like a partner or someone you used to share bills with) that should no longer exist

Found something wrong? Contact the lender and the relevant credit reference agency and ask for it to be corrected.

What helps you build a healthier credit history after a Trust Deed?

Start with the basics.

Double-check that your name, address and other personal information are correct with the credit reference agencies. Make sure you’re registered on the electoral roll if you’re eligible.

From this point, it's worth understanding what shapes your credit history going forward — because each time you take on credit or update your details, a new entry is added.

Making agreed payments on time can help you build a stronger credit history. If you decide to use credit again, make sure any repayments are affordable and manageable for you. 

There are also a few Trust Deed-specific pointers worth looking at. Check:

• Your discharge has been processed correctly
• The information about your Trust Deed on your credit reports is accurate
• The information reported about debts connected with your Trust Deed is accurate
• Any incorrect information has been raised with the organisation that supplied it and the relevant credit reference agency

The aim here is to make sure your financial record is accurate and to start building positive information over time.

Why does your credit score matter after a Trust Deed?

A stronger credit history can affect your chances of being approved when you apply for credit in the future. Whether you’re looking to rent a new place, get an affordable phone contract, insurance, car finance, or any other type of credit, having a good credit score and history matters.   

A Trust Deed typically lasts for four years, but the Trust Deed and defaulted credit accounts will stay on your credit report for six years. In the time between your Trust Deed completing and these records eventually disappearing from your credit report, you will have an opportunity to start rebuilding your credit history.

In the next guide, we’ll look at a the step-by-step guide to rebuilding your credit score after a Trust Deed.