Whilst in an IVA you should not take any form of credit, and certainly not a credit card - I am surprised that any creditor would even consider you for one whilst in an IVA ! If you are struggling then maybe you should speak with your IP for advice and support - they may be able to offer a reduced payment to help you out .
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Your credit rating would not improve either as your IVA and any defaults will be on your record for 6 years from the date of approval.
If you did take one out, then your IVA could be in trouble.
You should not take out any credit without prior permission from your IP.
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
they said they would only give me 100 pound limit even in the iva surely if i paid on time every month then this would go on my credit file which is good ?
You are not supposed to take any credit out at all, and it may be £100 now, but what if they put it up? Could you be strong enough not to spend it?
It would help your credit rating only after the six years is up and your IVA and any defaults have dropped off your file.
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
cheers kallis I wouldnt mind a ip's view on this if anyone could advise me? the main reason i was doing it was to see if it would improve my credit rating ready for when the iva finishes
I doubt if you would get any of the IP's who post on here agreeing that obtaining a credit card whilst in an IVA is a good thing Chris it sort of defeats the whole object of a new debt-free start and isnt allowed anyway.
I'd suspect an IP would want to know where out of your income and expenditure you manage to find extra money to pay the bill off each month. As for your credit rating, it won't make any difference at all until your fifth year as your payment history is 12 months with most (credit check) companies (Experian etc) - so in the year after your IVA finishes is the year to build your rating.
Last edited by n958g on Fri Jan 23, 2009 6:58 pm, edited 1 time in total.
hi chris
i can see your logic but the guys are right your credit rating will still be shot for 6 years and like kallis said even if its only £100 what if they raise your limit.
my advice would be to steer clear.
the iva is giving you a clean slate-dont give yourself any worry i would just finish your iva then think about rebuilding your credit score. good luck !
I would not be happy to see any of my clients continuing to use credit whilst they were in an IVA. As Jan rightly points out, the bank could increase the limits, and before you know it you could be back to square one. A £100 limit is of little use for anything to be honest, and you are far better trying to save that much for "rainy day" expenditure.
