How long should i wait

[fins123]

Hi,
I just wondered if i could get some advice.
I have just completed my IVA and awaiting the final sign off, which i understand can take up till the end of the year.

So the question is how long should i wait before i try to apply for a personal loan.
Only reason is my current car that i use for work is giving up on me and i have to travell around 300 miles aweek just to get to my job and back.

I understand that some loan firms wouldnt touch me due to bad credit rating, but i dont want to go to one of these companies that have a high rate of interest.

Could anyone give me some fair advice on this please?

Regards

[IVANotOverYet]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by fins123

Hi,
I just wondered if i could get some advice.
I have just completed my IVA and awaiting the final sign off, which i understand can take up till the end of the year.

So the question is how long should i wait before i try to apply for a personal loan.
Only reason is my current car that i use for work is giving up on me and i have to travell around 300 miles aweek just to get to my job and back.

I understand that some loan firms wouldnt touch me due to bad credit rating, but i dont want to go to one of these companies that have a high rate of interest.

Could anyone give me some fair advice on this please?

Regards

Until 6 years after the date of acceptance your credit file will be affected - assuming all of your creditors correctly set the file entries with the three CRAs. If there is tidying or corrections to do, it could be a while to clear your file.

That said, although your file may be clear this doesn't guarantee you'll be able to find credit - and until you have your Certificate of Completion you should not try in any case as you are still bound by the IVA's terms.

Sadly, you may well have no choice but to rely on a 'sub-prime' lender who will naturally charge a premium for your loan.

[fins123]

Hi IVANotOverYet,

Thats what i am worried about. It taken 5 years to make all my payments, so dont really want to have to have a loan with such a high rate of interest.But it looks like this is the only way.

Just putting another question out there.
Should these type of firms be allowed to charge such a high rate.
I.e Payday loads charging over 1000%

[IVANotOverYet]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by fins123

Hi IVANotOverYet,

Thats what i am worried about. It taken 5 years to make all my payments, so dont really want to have to have a loan with such a high rate of interest.But it looks like this is the only way.

Just putting another question out there.
Should these type of firms be allowed to charge such a high rate.
I.e Payday loads charging over 1000%

Well, to be fair one can understand the high interest charges as none of us represents a good credit risk - but you will not be in the realms of payday lenders, more likely sub-prime lenders such as MoneyBarn for car finance.

Alternatively, save up the IVA payments for six months while you wait for your completion certificate, and then use the money you've saved either to buy something better, or as a larger deposit to reduce the amount to finance.

Having been through an IVA, you and I don't demonstrate a history of good conduct so it's only fair that the lenders will treat us differently, at least for a while. At the end of the day, the credit files' machinations are clear and transparent, and it takes as long as it takes for your credit rating to be rebuilt. Starting with a small sub-prime car loan isn't a bad way to begin climbing the credit-rating ladder again.

For my own part, I've made the decision never to take credit again except for a mortgage.