Obtaining credit after an IVA

Once your IVA has come to an end, you're going to want to make sure the long-term impacts of the IVA are kept to a minimum.

The best way to do that is to follow these simple steps and, in due course, you'll be able to begin the relatively simply process of rebuilding your credit worthiness.

An IVA will, for most people, last for 5 years. However, it will remain visible on a credit file for 6 years, starting from the Creditors' Meeting date.

So, by far the most constructive action you can take is to set about cleaning your credit file.

Cleaning Up Your Credit File

At the end of your IVA you'll be issued with a certificate of completion and, as the name suggests, this document denotes that your IVA have been completed successfully and your legal obligations to the IVA have been removed.

Your certificate of completion is your way of being able to prove your IVA has completed satisfactorily, so you should keep it safe.

You should make photocopies of your certificate of completion and send a copy to each Credit Reference Agencies (CRAs) of which there are 3:

The CRAs will update your file to show your IVA has been satisfied and completed successfully.

You should request a copy of your credit file and check that the information held is accurate and up-to-date. Then, once you're happy everything is recorded accurately, all you can do is wait.

After 6 years

After 6 years has elapsed from your Creditors' Meeting date, your IVA will automatically be removed from your credit file. From now on, whenever you apply for credit the IVA will not be picked up by any credit search.

But this doesn't mean any credit application will be a guaranteed success. Far from it, because the problem you have now is that you have an almost clean credit history.

This means that prospective creditors can't tell whether you're a good credit risk or not as there's no evidence either way for them to relate to.

Rebuilding your credit rating

So you'll need to begin the process of rebuilding your credit rating.

This is best done by making applications for modest levels of credit with companies that specialise in offering credit to people in your position.

Vanquis credit cards are regarded as a safe place to start, and so would approaching your current bank for a small overdraft.

As each of these credit agreements find there way on to your file, you'll soon begin demonstrating to potential lenders that you pose no threat to them and, as a result, your credit rating will begin to improve.

Professional IVA Advice

The team behind IVA.info are here to help you if you are considering entering an IVA and have questions you'd like to ask before you commit yourself to the process.

Please call 0800 088 7502 to speak to an adviser or, alternatively, complete this form and one of our advisers will contact you at your preferred time.

Getting credit straight after an IVA can be problematic. Here at IVA.info we have written an article explaining how an IVA affects your credit rating during and after an IVA.

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