can I apply for and be accepted for a credit card whilst in an IVA ?

[Russell.ch]

can i apply for and be accepted for a credit card while still on an iva

[back on track]

nope your not allowed any form of credit other than any that's allowed for in your proposal.
if you do it could mean you are in breach and your iva could fail and then you would be back to squre one with your creditors and be liable for all your original debt plus intrest.

[Shining]

Hi and welcome to the forum. I would have a look at your proposal as some allow for up to £500 credit without the permission of your IP others allow no credit whatsoever, have a check and if in any doubt check with your IP before proceeding. Bearing in mind with an IVA on your credit files it may be very difficult to obtain credit of any sort.

[Julie]

Hi,

Depending on your proposal you may be allowed to apply for a limited amount of credit. Whether you would be accepted is down to the credit companies, bearing in mind if you were accepted the interest rates would be high.

As an add on to your question. May I ask why you would consider a credit card whilst in an IVA?

Julie

[Fiatfan]

This is something that really confuses me about the statements in the iva document. In one instance it says no new credit can be obtained, then says credit upto £500 doesn't need to be declared.

I can't see anyone, short of PDL's giving credit to us in iva's even under £500

[Foggy]

The "credit up to £500" is, I believe, to cover things like monthly pay car insurance ( which is often a credit agreement), utilities billed in arrears ( power, gas and phones).

[Fiatfan]

Thanks Foggy, forget they will be credit agreements.

[UpToMyNeckInIt]

In relation to obtaining additional credit, my IVA is worded:

'...I propose that I shall not incur any credit greater than £500 during the course of my IVA except in relation to domestic utilities... without prior written consent of the Supervisor. Should credit greater than £500 be obtained without prior written approval of the Supervisor, this will constitute a breach of the Arrangement'.

I interpret the above as meaning that I can take out £500 in personal credit AND have credit for 'utilities' on top of that. It's only if I needed to borrow more than £500 that I would have to seek consent.

I know that some IVAs have similar wording, and could be interpreted accordingly.

Some IVA customers can obtain a credit card with Vanquis, Aqua or other similar card companies.

To answer the OP's post: I got a Vanquis card with a £500 limit. But acceptance is by no means guaranteed, and seems to vary from customer to customer.

[Foggy]

Ah .. mine doesn't have a reference to utilities being considered separately. The "I" is, after all, for "individual"

[UpToMyNeckInIt]

...Interesting point Foggy.

Even the '£500 credit clause' can have subtle differences in each individual IVA.

Best bet for anyone considering extra credit in an IVA is to check their own agreement VERY carefully first, and query it with their IP if required.

[Shining]

I agree UptoMyNeck, your IP will hold the answer if the paperwork isn't clear to you. Always best to ask.