www.iva.co.uk

Afternoon all,

I have a question about credit scores. I know that people suggest getting a low limit credit card after an IVA to help boost the numbers, but I'm avoiding that if possible. On my file I have monthly car insurance, home insurance and mobile phone contract. These are all up to date and green. So, will these help my score improve over time? They are after all credit agreements.

I don't want to take any credit so the score isn't really important in that respect but I was curious. According to Noddle I have 4/5 rating which they say is "Good"... not that means anything in reality though

S

The score should improve over time. Normally 'showing up' boosts your score - so being on the electoral register is a big positive and then if you had credit maintaining the payments increases your score over time. Applying for credit, at least in the short term, normally has a short term hit on your credit score. People can have a score in the 900s when they still have defaults and ccjs recorded against them so there is no 'one fits all' answer/solution to be honest.

Regards

I have had a Vanquis card for a couple of years now and only now, in the past month, have I gone from 4/5 to 5/5 on Noddle. I am in two minds about the use of credit builder cards. Yes, they give a little history, but they also point out that you needed a credit builder in the first place .. swings and roundabouts, also, according to Noddle, one of the negatives on my clean record was the low credit limit -- can't win ! However .. and read into this what you will ... within a couple of months of getting a "real" credit card (from the Co-Operative Bank) is when the credit score improved.

One thing to note (not necessarily aimed at you) Pay Day Loans do not improve credit scores - many people have taken them in the past believing that they do so. Many Mortgage Lenders now will actually decline a Mortgage Application if payday loans have been taken in the last 6 years.