Rebuilding Credit Rating

Get expert opinion. This is the place for new questions to be posted.
11 posts Page 1 of 1
 
 

Clarissa

User avatar
Posts: 6
Joined: Wed Nov 18, 2015 2:35 pm
Location: United Kingdom

Post by Clarissa » Wed Nov 18, 2015 2:45 pm
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.

Can anyone please advice?

Many thanks

Clarissa
Nearly there :-)
 
 

kallis3

User avatar
Forum Expert
Posts: 77167
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Wed Nov 18, 2015 3:14 pm
Hi and welcome,

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
 
 

sprowstonboy

User avatar
Posts: 209
Joined: Wed Jul 29, 2009 1:38 pm
Location:

Post by sprowstonboy » Wed Nov 18, 2015 3:14 pm
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
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Wed Nov 18, 2015 3:15 pm
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.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Clarissa

User avatar
Posts: 6
Joined: Wed Nov 18, 2015 2:35 pm
Location: United Kingdom

Post by Clarissa » Wed Nov 18, 2015 3:22 pm
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.
Nearly there :-)
 
 

Clarissa

User avatar
Posts: 6
Joined: Wed Nov 18, 2015 2:35 pm
Location: United Kingdom

Post by Clarissa » Wed Nov 18, 2015 3:31 pm
Do the prepaid cards help with your credit rating?
Nearly there :-)
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Wed Nov 18, 2015 3:32 pm
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.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

kallis3

User avatar
Forum Expert
Posts: 77167
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Wed Nov 18, 2015 3:35 pm
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
 
 

Clarissa

User avatar
Posts: 6
Joined: Wed Nov 18, 2015 2:35 pm
Location: United Kingdom

Post by Clarissa » Wed Nov 18, 2015 3:46 pm
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.
Nearly there :-)
 
 

Clarissa

User avatar
Posts: 6
Joined: Wed Nov 18, 2015 2:35 pm
Location: United Kingdom

Post by Clarissa » Wed Nov 18, 2015 3:48 pm
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!
Nearly there :-)
 
 

kallis3

User avatar
Forum Expert
Posts: 77167
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Wed Nov 18, 2015 4:36 pm
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
11 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”