www.iva.co.uk

Hi all,

Couple of things to say before my question...

1. Congrats to all those who've had their IVA's agreed since I was last here... dificult decision, much anxiety, but without doubt the first step on a really important journey to a debt free future.
2. Apologies for not logging on for so long. I find this site invaluable, have had some really useful advice and great support when I've needed it. It's been a real lifeline at times, and I've been dropping in to read posts weekly. Wanted to say so many times, 'hang in there, it gets hard from time to time, but it really is a journey with an end', as the many great success stories on here attest.

and so to my question.... Just 10 more payments to make, and starting to think and believe this journey really is coming to an end, and wondering how I'm going to cope once it's over...One of the things I've been thinking about is how to restore a good credit rating. I've read several times on here that to do so, basically you have to borrow and repay money. What I want to know is, is that true, and if so, what is the recommended way of doing it without running the risk of getting into debt again, credit card, loan???

Hope someone has some ideas....

Hi, I do believe your credit rating is shot for 6 years from date of acceptance, by paying your mobile phone (contract) utility etc., it all helps but some posters do obtain a credit card Vanquis for example does have a high APR but basically if you use it say for your petrol/diesel and pay it off monthly it will help. Others will have other suggestions I'm sure. Well done for almost being there you're definitely on the homeward straight now. x

Thanks Lesley, thats useful. Already pay utilities by dd so hopefully that'll help, though mobi's on pay as you go, so may need to look at that. What confuses me is how you get a mobi contract or credit card in the first place with a poor credit rating... surely they'd just decline?

I think if you look at Vanquis they accept people with a less than perfect rating and their APR is very high I do believe, so they may give you a chance, I know one or two posters got one when their IVA/Bankruptcy concluded. I kept my mobile contract which I had pre-IVA so not sure if you'd get one whilst in an IVA x

I think you'd struggle to get a mobile contract, but I do know there are posters who have managed to get the Vanquis card.

Also, if you have a mortgage & pay that on time it helps your credit score.

If you can be strict with yourself,its very easy to get a catalogue account(next,littlewoods etc),just order something and pay the balance off in full several times.Just make sure you refuse any credit limit increases. Basically anything like that will help show up a good payment history on your CRF.

Paul

Many thanks all, really helpfull advice... a little way to go yet, but feels good to be starting to think about positive things...

and thanks RHB, that really is the aim. We've never owned our own property and our dream is to do so. Getting our credit rating to the point where a mortgage is possible is what we want to achieve - appreciate it might take a few years post IVA though!

Just keeping your current account in credit helps too!

Just keeping your current account in credit helps too!

I would think that you'd be in a better position for a mortgage after all the bad stuff has gone from your credit file, cause you will also have no other debts.

Given that banks and mobile phone companies record details on the CRA's then this is going to start to build up some positive data on the CRA.

I would think very carefully about getting the Vanquis card as it will show on the CRA file, yes but as the card is known to be used mainly for people who have had past credit problems, may throw up a red flag for any mortgage company looking at your file later on.

Probably better getting a normal bank credit card after all the bad stuff has gone if you want to build up the credit file that way.

Hope some of that was useful.

brilliant inaniva, really helpful advice and much appreciated.... I see you're at the same stage...is the light at the end starting to feel real for you yet?

Yes indeed it is, this time next year hopefully we can put all this behind us and start again with a clean slate.