Hello,
I''ve just finished my IVA.
Can I apply for credit before my completion certificate has arrived? I really need a loan to help me move house, it''s impossible to carry out the move otherwise...
Hi Mark and welcome to the forum, well done on finishing your IVA,
I'm not sure about the applying for a loan as your IVA will still be on your Credit record for 6 years from date of commencement of the IVA. I understnd your need for a loan to move house but wonder if a family member can loan you some money to tide you over and you repay them x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi Mark
Welcome to the forum.
I’m afraid you are going to find it very difficult, if not impossible to obtain credit. Your credit rating will still be affected up to 12 months after you finish your IVA (assuming it was a 5 year IVA) as it takes 6 years from the start of your IVA for your credit rating to refresh itself.
the question was "am I allowed" to apply for credit before the certificate arrives rather than what my chances are (I understand they're very very low !)
I'm sure one of the experts will be along soon to reply to your question, but in my case, it was written into my IVA paperwork that I was not allowed to apply for credit over a certain amount (I think £500) during the term of my IVA without the express permission of my supervisor. If yours has finished, and you are just waiting for your completion certificate, first of all well done (!), but personally I would wait for confirmation that your IVA has been closed off before applying for any more credit. Also, and this is just a personal opinion, and everyones circumstances are different, I would much rather try and find the money you need from family members rather than try and take a loan out. As has already been said, the credit will be almost impossible to obtain, and even if you did manage to get it the interest rate you will pay will be an awful lot higher to reflect the higher risk the loan company are taking by loaning you the money. Cheers.
UpToMyNeck has actually answered the question because you can obtain credit with the consent of your supervisor. Given that they are closing the file down there would be no objection to the application for credit and indeed they may give a reference which might improve your chances of sourcing such credit.
I think I'll just have to wait and see whether I can postpone the moving out... I don't want to go back to the IP for this at this stage; it just feels wrong.
I wish they'd hurry up with this b***** certificate! [:)]
However, whether you apply now, or wait a few weeks, you will be lucky if you can find anyone to loan you money at the moment.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The advice that you have been given is correct - but personally if I were you I would go ahead and apply. The IVA will still show upon your credit file for the six year period, so whether the IVA is closed or still technically open, it will have the same effect on your application.
