Does being on an IVA effect you credit file drastically ?

[Laura.40]

does being on an iva effect you credit file drastically?

[sponge]

It totals your credit file, no one will lend you a pencil. And it will stay that way for six years. An IVA is soft bankruptcy you are both insolvent IVA. An IVA in my humble opinion an IVA is fast becoming a very heavy millstone some extending to 8 years and for those in heavy debt. If your debts are as below, a debt relief order maybe a better option. But like all things get some advice from an IP like the jolly good ones on here or look on IVA.com

DRO
You’re generally eligible if all the below apply - you:
• owe less than £15,000
• have less than £50 a month spare income
• have less than £300 worth of assets
• have lived or worked in England and Wales within the last 3 years
• haven’t applied for a DRO within the last 6 years
I also think you can keep your car if it’s worth £1000 or less
Restrictions
If you get a DRO you must follow rules called ‘restrictions’. You can’t:
• borrow more than £500 without telling the lender about your DRO
• act as the director of a company
• create, manage or promote a company without the court’s permission
• manage a business without telling those you do business with about your DRO
re small and have little or no assets the below maybe an option

[sponge]

I hoped that make sense, typed it to fast as have to go home and walk the pooch! good luck

[zarron]

yep but in time it slowly recovers.. 8 yrs on from my iva and my credit score is now a glowing 5 out of 5. takes a while to build it back up but you are not black listed for life! i started off by using getting a Vanquis card paying it off in full each month and going on from there.

[Shining]

Your credit rating will definitely be shot for 6 years from date of meeting but like zarron says it is repairable given time. I'm hoping to see a big difference after next Feb x

[ClareSilver]

Unless you pay your liabilities on time every month without fail, your credit file will be affected.

Your credit score can also be affected even if you don't have any form of credit - lenders can potentially see you as a higher risk. If they don't see a history of regular payments, then although they may lend to you, the rates you may be offered may be higher.

Having some debt is good, as long ias you stay within your limits and pay every month on time, without fail.

If you miss a payment on anything, your credit file will be affected. Initially you'll have a record of missed payments then eventually defaults.

Whether you opt for an IVA, Bankruptcy, DMP or a DRO, your credit file will be adversely affected for a minimum 6 years. If you're in debt and need a formal solution to sort this out, then your credit file really should not be a major concern.

You can recover financially from a formal debt solution, it just takes time. Don't worry about your credit file, just get your debts sorted and life will be much easier in the long run.

[luluj]

It slowly rebuilds ... The current account, mortgage, phone bills etc all help towards showing a healthy credit report nd in time in will restore. Our IVA is due to fall off next week along with all our defaults etc ... It will be interesting to see the difference it makes ! Not that i am looking for credit !

[sponge]

Errr girls/guys the bit about your CR slowly rebuilds itself post IVA of CR in many circumstances that's just not..well true. if as a lot of posters who have posted on this subject have said you are left with an unusually high credit score post IVA (clear from CR) all things being even get you access to very competitive credit. I know this to be true as I have put it to the test..

To my mind this is something a bit odd to IVA.co.uk a sort of myth probably planted by Vanquis!