how do you mean credit rating will be effected but not as bad as bankruptcy. How bad are we talking and how realistic is it to get credit after completion of IVA?
Doesn't matter if you are bankrupt or in an IVA. Your credit rating will be shot from the date of either BR, or IVA, for six years.
You can get credit again after both, but it is unlikely until after the six years are up.
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
Hi SC S, Thats not entirely true. I had to change banks just before entering into my IVA and within in a year they were offering me a credit card and overdraft. When i completed my IVA early i applied for credit again and now have an interest free credit card through my bank and another lender and were also offerd a loan through my bank. This is all whilst in the six year period. I think as long as you keep your nose clean with your bank whilst in the IVA there shouldn't be a major problem obtaining small credit when you finish your IVA. Its just a mortgage and large loans you will find difficult to get.
Although rushing to get credit again is probably not the best idea!! Not to mention that your IVA expressly forbids this whilst in the IVA term without the consent of your IP
Last edited by Dougie on Thu Sep 24, 2009 5:54 pm, edited 1 time in total.
IVA Accepted - Sep 2009
F&F Accepted - Oct 2014
CC Received - Jul 2015
The vast majority of us cannot get credit until the IVA and any defaults are off your account.
I don't think it makes any difference whether or not you keep your nose clean with your bank - most of us have to as we have no overdraft.
Once the 6 years is up, there shouldbe no problems at all.
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
But I gave an honest answer. Beleive me, being in IVA will teach you a good lesson about credit that hopefully you will never forget. But if you need to get a mortgage or car loan in the future its worth SENSIBLY building back up your credit rating.
I didn't say you weren't honest, I just said that you were very lucky. There aren't many people on here who have been able to do that.
Don't forget as well that bank accounts, mobile phone contract, mortgage and secure loans will all help towards building up a decent credit rating once your IVA is finished.
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
After the completion of an IVA, when trying to build up your credit rating again I sometimes recommend starting very small i.e. interest free loan to purchase a sofa. The loan amount would be small enough, that even with a poor rating you could be accepted, and the payments are very small, so manageable and affordable. It counts towards a good credit scoring just the same as you continue to make regular payments on time etc.
The key is to not try to go too big once out of an IVA as you will just be refused. It's like leaving school again and gettin your first loan...don't aim too high!
Kind regards,
RJC Financial Management
Accountants and Insolvency Practitioners with over 18 years experience.
I know some of the experts on here recommend a credit card such as Vanquis, who are quite good a giving cards to people with poor credit ratings.
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
I would think if you shop around and don't aim too high then it is feasible. I know some previous clients have managed it with DFS (on one of their many sales!) where the sofa costs under £500 and they pay around £10 per month for 4 years.
It's just a case of taking little steps at a time.
Kind regards,
RJC Financial Management
Accountants and Insolvency Practitioners with over 18 years experience.
It would be interesting to hear from posters who have managed to do this straight after an IVA has finished.
I've not read much on here which inspires me with confidence.
Not that I will want any credit!
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
I get the impression DFS and a few of the other sofa firms maybe dont have quite as strict lending criteria so maybe its not a bad route to go down. When you sit on our sofa your bum almost hits the floor so by the time I have repaid my dues a new sofa certainly wouldnt go amiss!!!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
We will definitely need a new suite when our IVA is completed!
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
