Hi, I am brand new to this forum, but only have 3 payments left to make on my IVA. Come March next year I will have a huge weight lifted off my shoulders.
What I would like to know is what happens then? How do I go about rebuilding my credit rating? I would like to immediately start saving towards one day buying my own house and I don't want to struggle getting a mortgage due to having no credit rating.
Your credit rating will be shot for six years from the start date of the IVA and you will remain on the Insolvency Register for about three months after your completion letter is received.
Depending upon which company you are with, it can take some months for this to be issued.
Have you had any PPI investigated at all?
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
Being on the electoral register helps, also things like a contract for a mobile phone can increase your credit rating. Also dare I mention a credit card like Vanquis, use it to buy little things and pay off the balance fully each month
Well done for getting this far and your credit fiel will clear up anyway. Everything falls off after six years so if yours was a five year IVA try and save the IVA payment each month whether with your bank or a lender such as Nationwide. Then once the defaults fall off you will have shown an ability to save which will help.
You could get a credit card from the like of Vanquis but if you maintain your banking facilties correctly and pay the likes of mobile phone bills and Sky on time you should be okay.
Hi, thank you for the replies. I am with McCambridge Duffy. I guess my worry is that my credit rating will be the same as that of an 18 year old that has never had credit and will make getting a mortgage difficult or high interest.
Anything good stays on your credit file and anything bad falls off it. If you had a car on HP for example this would still show but until your IVA is six years from commencement there will be problems.
There are two mortgage brokers who post here who could give you a more definitive answer as to mortgages in the future but plenty of ex IVAers go on to buy properties.
I hope we have treated you well over the past five years and if there is anything I can do [like speed up your completion certificate at the time] please feel free to contact me directly at any stage.
Not really as they are not credit and you can have one of those without a credit check.
As sprowstonboy says - a credit card such as Vanquis will be a great help. Just use it for fuel and pay it off every month.
Also, as Michael says, keeping a mobile phone contract, sky up to date will be a great help.
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
Thank you everyone. McCambridge Duffy have been very good to me. I had to take a payment break when I lost my previous job and they sorted it out without any problems.
It will be 6 years in July 2016 since the start of my IVA. That will also be four months after completion so hopefully everything will be good from then on. It will take me at least three years to save to look into buying a house, so I just want to ensure in that time I am in the best possible position to get a great mortgage offer.
Sorry I should have answered, I am on the electoral role, I have a mobile phone contract and I have never missed a rent payment.
It will be like being given my freedom back once I have made that final payment. Been struggling with debt since 2001, so it will be 15 years of stress gone!
I would certainly think of having a credit card. Once you have your completion letter things should be on the up. McD are very good at issuing completion letters.
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