Does Breathing Space affect your credit score?
Written by
Emily Tye
Reviewed by
Amy LancashireNo, Breathing Space doesn't directly affect your credit score. The scheme isn't recorded on your credit file, and credit reference agencies aren't told you're using it. But any missed payments or defaults, before or during Breathing Space, are still reported and can lower your score.
So the honest answer is that Breathing Space itself is neutral. What affects your score is the debt situation that led you there. Here's how it works in practice.
If you're struggling to keep up with payments, free impartial debt advice is available from organisations including StepChange and Moneyhelper.
What is Breathing Space?
Breathing Space, officially the Debt Respite Scheme, is a government scheme that gives you legal protection from most creditors while you sort out your debts with a debt adviser. It launched on 4 May 2021 and covers England and Wales only, though it’s being extended to Northern Ireland. Scotland has its own Debt Arrangement Scheme.
There are two types:
Standard Breathing Space lasts up to 60 days
Mental health crisis Breathing Space lasts for the length of your crisis treatment, plus another 30 days
During either type, most interest, fees and charges on the debts included are frozen, and enforcement action such as bailiff visits has to stop. You usually apply through a debt adviser rather than directly. It's widely used: 4,817 people entered a Breathing Space in May 2026 alone, according to the Insolvency Service. If you're weighing up your options, our guide on how to get out of debt walks through the main routes.
Does Breathing Space show on your credit file?
No. Breathing space itself isn't recorded on your credit file. The three credit reference agencies, Experian, Equifax and TransUnion, aren't notified that you've entered the scheme, so there's no "Breathing Space" marker for a lender to see when they run a standard credit check.
Your details do go on a register held by the Insolvency Service, but it isn't public. Only debt advisers and the creditors involved in your Breathing Space can see it, and it isn't used for routine credit checks. In short, using the scheme doesn't leave a visible mark on your main credit file.
Why your credit score can still fall during Breathing Space
This is the part that matters most. Breathing space pauses enforcement, but it isn't a payment holiday. If you stop paying an account, the creditor will still report those missed payments to the credit reference agencies in the usual way, and missed payments stay on your credit report for six years.
There's also the bigger picture. By the time most people reach Breathing Space, they may have already missed payments or defaulted on an account. Those markers were already affecting your score before Breathing Space started, and they'll keep affecting it while they sit on your file. If you've had a County Court Judgment (CCJ), that stays on your record too. Breathing space doesn't remove any of them.
So the drop in your score comes from the debt itself, not from the decision to deal with it. You can see the full list of factors in our guide to what affects your credit score.
Can lenders tell you've used Breathing Space?
The credit reference agencies can't, but the specific lenders included in your Breathing Space are told. They may keep their own internal record of it. That could affect whether they'll lend to you again, or on what terms, even though it won't show anywhere on your wider credit file. Lenders you've never borrowed from won't know.
Will Breathing Space affect getting credit in future?
Not the scheme itself, but three related things can:
New borrowing is capped while you're in it. During Breathing Space you must not take on new credit that adds up to more than £500. It's a short pause to get advice, not a time to borrow more.
The lenders involved may remember it, as above.
The plan you move on to. Breathing space gives you room to set up a longer-term solution, and some of those are recorded on your credit file. A debt management plan can affect your credit score, and so can an individual voluntary arrangement (IVA).
For most people, your existing credit history, the missed payments, defaults and any CCJs, is the biggest factor in future applications, not the Breathing Space.
How to rebuild your credit score after Breathing Space
Breathing space buys you time. What you do with it is what moves your score back up. A few practical steps:
Stick to the debt plan you set up with your adviser
Pay any current bills and credit commitments on time, every time
Register to vote at your current address if you haven’t already, which helps lenders confirm who you are
Check your credit file with all three agencies so you know where you stand
Keep any credit use low as your finances stabilise
Our full guide covers more ways to improve your credit score over time.
FAQs
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
