You could theoretically accelerate the recovery by getting a string of green ticks for your utilities, mortgage, phone, bank accounts or anything else that is reported to your credit file so that when the iva drops off after six years you have 5 years 11 months of good credit. And the more lines of credit reported to the credit ref agencies the better. Your IP will be reluctant to agree all but the smallest amount of credit and simply wanting a credit card won't cut it...and you'd need to be in dire straits to get approval for car finance and even then you'd struggle to get finance at an affordable level. Putting theory aside, in reality most lenders keep and share credit histories for much longer than our credit files last so the iva will linger like a bad smell for a good few years to come. Patience is the name of the game
The IVA will put paid to getting most forms of credit. For a car loan you would have to use something like Moneybarn and their interest rates are very high and the only loans you are likely to be able to get would be payday loans.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Where a person happens to be in an IVA, not much of the 5 year + process feels like a "rush", mostly the clock seems to tick very slowly.
Given we are in a society where credit is important, for instance to business people whose normal practice is to borrow in order to operate ( buy to let landlords is one example ), then any acceleration to 'normal' credit might be considered a good thing.
( Please no discussion about banks not lending to anyone, any more, in any event. prefer to keep on topic )
I think we've covered this topic as best we can for you. There is no magic answer. Run your affairs in good order during the iva to build a historical picture and try for a Vanquis card or similar when your iva is over - it is slow and steady I'm afraid as creditors are looking for reliability and that can only be shown over a period of time. You don't want to talk about banks but you can't deny that mainstream lending will most likely be closed off until their policies change (which will be driven by the need for profit so maybe all these reforms will help us).
Totally agree with you Paul. I thought we should treat an IVA as learning to live without credit if we can, not clearing our debts and then starting again!
I dont think credit itself is a bad thing though Kazza,and I shall no doubt in the future take out credit(when they will let me),but being able to control the credit is part of the rehabilitation. I always thought I was in control when in fact I was so out of control you couldnt believe it. I also failed to control creditors constantly upping my credit limits several times in a year or multiple credit cards.
An IVA will teach you to live without credit but when your boiler blows up mid january and its credit card or no heating you have to be able to trust yourself once again in the murky world of credit.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I'll never say that I can manage without credit but I will be very careful what I have and how I spend it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Good job I am in rented then! I really don't want to have any credit ever again. It nearly finished me off and I don't believe with my depression that it's safe for any form of credit to be offered to me again.
Me too. I'd like a mortgage one day but otherwise it'll be a small credit card stashed with my mum for safekeeping! I wouldn't trust myself....I have an addictive/obsessive personality and if I have money I obsess about spending it!!
I will never be able to get a mortgage again due to my age (won't need one though) but I will need new furniture and won't be able to wait until I can save up enough to buy one with cash.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Yeah I suppose I could cope with credit in that way but not cards or overdraft. The minute something goes wrong in my life I would be out spending hundreds of pounds again.
I probably won't bother with a credit card and neither of my bank accounts have an overdraft so I won't bother asking for one once the IVA finishes. I will have managed without for 5/6 years so I'm sure I can continue to do so.
Know what you mean about comfort spending!!!!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
