I have just been approved for an IVA and the terms are that I cannot apply for any credit over £500.00 during the time. I have heard about the Vanquis Credit Card as a good way to start slowly rebuilding credit again and wondered, if it was a) something I could apply for and b) whether it would likey to be approved as I have an IVA. I would like to start working on restoring my credit as best as possible and any help / advice would be appreciated.
I had a vanquis card and must say the APR is very high. I dont know if it would do any good at all for your credit rating whilst in an IVA. I thought you wernt allowed credit cards at all.
I think it is rather pointless to start bulding your credit file till you are off the IVA.The IVA will be like a storm on your credit file in the meantime and no attempts to built it now will make a difference to lending. We may be 'prohibited' to getting credit as many say but in fact we can't get credit as the credit file is wrecked. You need to revisit this in 5/6 years time. Not the answer you want but it is the honest truth. Why not sign up to Experian for a free trial and see your file. For an extra £4.95 they will score you as well.
This is one major downside to an IVA, after the debts are cleard you are still 'struggling in a way. People need loans these days with good or bad history....its the daily fix.
"DEbt is all in the mind. Think wealth and you'll be wealthy but not in £££"
Even though your credit rating is shot for 6 years it's worth having a bank account that reports to the credit reference agencies as this will help to rebuild your credit rating, and if you have a mobile phone contract that will also help.
Its not a question I really want to ask at this time but: I know someone who went BR, lost his home and everything else he had, including his family. He now owns a home, has credit cards and a car. I asked him about it recently (he knows nothing about me) and he said he had a 200 pound limit given to him by capital one, he filled out a form on the internet. It just grew from there.
It can be done, rebuilding your credit and I think it was MUCH easier then before the credit fall when the Banks falls couldn't stop lending....its a very important point.I mean does capital one still do this card??
It could take 7 yrs and a good job to go from BR to normal borrowing. Credit crunch started in 2007, any purchase before means brought before the crunch.Trying repeating that after 2007......Nay No more 100% mortgage
In the future it wouldn't be that easy because the Banks are now griped by unparalleled fear and loathing and the forboding that defaults will rise and hence everyone is deemd a risk in waiting.
5 years from now who can say what will forbode??? I am skittish and bearish on this matters.
Last edited by NBNA on Thu Oct 02, 2008 10:28 pm, edited 1 time in total.
"DEbt is all in the mind. Think wealth and you'll be wealthy but not in £££"
His story has no relevance to the current climate. I know he went through hell at the time. I don’t know if capital one still do the card. No idea about his mortgage, I know it’s a fairly recent purchase, perhaps 2006, he went BR is 1999. I remember him saying the new millennium the new me. He appears to have managed to come back from the debt.
I am a little surprised that the poster seems keen to get credit again whilst having only just having had an IVA approved. It seems rather that the point of the IVA, to get debt free, seems to have been missed somewhere along the line.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Hi Choccy and welcome to the forum. I agree with size5 and think even looking at credit may make your life harder - isn'tthat how we all ended up here.
I am trying another route to show I am trustworthy and responsible with money - as much for me as for the future.
I have the usual no over draught bank account, a savings account (not much in either but they are in credit!!) and a pre-paid credit card for emergencies.
Crediy has to be paid back so bear that in mind.
Good luck,
Chardonnay
You will have no chance of getting any bank to grant you a credit card whilst you are in an IVA, which in any case would cause you to be in default with the terms. The whole point of proposing an IVA is to rid yourself from credit, not to start building it up again so soon.
I've been BR but I want to repair my credit files. Credit doesn't necessarily mean cards and loans - I certainly don't want those. I might want a mortgage in the future, or HP for a new car though. I also want a 'proper' bank account with a debit card. Even if I wanted to rent a property a credit check would most likely be carried out.
I have requested my credit files and may clean them up. I do not want a mortgage or loan or credit card ever again but the only thing I am hankering for is a lovely, nice shiny car again! [:D] I am so naughty.
I have my lovely house for life now, no debt but have a beat up old banger, its cheap to run and gets me about, but I have my private number plate on retention and would love a nice car to put it on again, I wonder what my chances of getting a car HP would be once I have cleaned up my files? would I still have to wait the 6 years from the bankruptcy date??[:0]
I'm aware of a company that at least up until a couple of months ago could give access to car funding for those with damaged credit ratings up to and including bankruptcy. I'm not aware that this has changed.
The terms carry a weighting for the previous credit issues but in certain specific circumstances might be appropriate for an individual.
A wait isn't necessarily required; the judgement about appropriateness is there to be taken by borrower and lender.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
We can't do without debt, its the norm, and its what create prosperity,surprise to hear that - an irony yes but that's life.Its so obvious now given the debt bale out of the US - "government debt to bail out Bank debt to allow more lending to joe to fund his kids and 4 by 4 etc etc"
My prediction - In the UK any post IVA termination(mine included) date of Aug 2007 will be very hard hit to get the Banks confidence to lend again.People are taxed to oblivion and the government say it needs to borrow more in the future...pay award below inflation rate.....that leaves no room savings....to buy things with a deposit.
Andrew - 100% lending is no longer a fashion statement...not cool.Whoever is lending 100% are some foreign sub prime US bank(are theer any left)with ridiculous interest rates???
Last edited by NBNA on Thu Oct 02, 2008 10:52 pm, edited 1 time in total.
"DEbt is all in the mind. Think wealth and you'll be wealthy but not in £££"
