Raising Credit rating.

[vanessa.d]

Raising Credit rating.I have been in IVA for 18months and have offered a F&F settlement.If this is accepted I would like to try for a mortgage this year. What is the best way of trying to improve my credit rating again? Thanks,Vanessa.

[MelanieGiles]

It will happen gradually, as you put more blue sky between the date of your settlement and the application - but the IVA will stay on your record for six years from the date of the original IVA acceptance date, regardless of the time you settle.

[plasticdaft]

Dont want to state the obvious but you will need a fairly substantial deposit. Good luck though.

[kallis3]

Your rating will helped by having a bank account and things like up to date mobile phone contracts, with no missed payments.

As plastic says, your IVA will show up for 6 years unfortunately.

[vanessa.d]

Thanks everyone. Not yet had F&F accepted but just trying to find ways to get credit score improved. Have a mobile contract so thats good news! Good luck to you all, hope this year will turn out to be better than predicted for us all! x

[plasticdaft]

One of the stupidly high rate credit cards may help(vanquish is/was one). If you can get accepted and are very controlled with your spending it would show a payment history in your credit file(maybe use it for a tank of fuel once a month then pay off the balance). If you feel you may go out of control then I would avoid this as an option.Good luck.

[kalla]

The more you show that 'lending' or/and bills are repaid without late payments ,and the incurring of O/D (a NO!! NO) then your credit rating improves. Note that the Banks and the credit agency have differing expectations. If one has little borrowing or owns nothing(a good credit score) but it doesn't mean the banks will recipricate the same response. They want to see track record of payment history over time. So for example if you suddently wanted 100k for a house, they would expect to see some 'proof' you have well managed previous borrowing.A phone bill as proof is [probably not enough]for that kind of borrowing.Consider, this...there are people who still claims they have no debts but can't get credit....some have debts to be paid off and can get credit?

In the US it is much clearer, at least 700 credit points along with a steady job and you good for credit...all written up and clear....not like here in the UK....the treatment of case by case for credit can prejudice people.

For ex IVA people I curious as I have not seen any evidence or information about getting new credit(not remortgaging) situation after a IVA.An issue definately.

[kallis3]

I don't think any of us are really bothered about how credit scoring works in the US.

As for post IVA credit, a lot of posters on here who have completed their IVA/BR don't bother to post again. It would be interesting to see if anyone has applied though.

[kalla]

The good thing about the US system of consumer credit is that you know where you stand with credit opportunity - to the letter. British banks are still operating on case by case basis which means someone will be rejected with NO reason and cannot fix it!

I like transparency in dealings and the UK Banks have now got to be in every dealing they have with tax payers - as creditors will be expected to explain in full if they reject someone's IVA. We are not seeing that with credit rejections in the UK.

The letters of RJ'are crytic - "there is no adverse information in your credit file but at this time we feel we unable to assist with your aplication" - sounds familar....Can anyone translate???

[kallis3]

That's as maybe, and I'm sure it's a good system, BUT, we don't have it over here, and probably never will do.

I've never had that on any rejection I've had. It's always been 'we cannot give you the reason for your rejection, but suggest that you check with the credit reference agency.'

The only time I have ever had problems when I knew my record was ok, was when I applied for a full Flex Account. They refused and suggested I check with Experian - I did and my record was perfectly fine. I then went across the road to Barclays and got a full account and credit card!

[size5]

I have posted this before, but a while ago now so it is worth repeating.

I am seeing a small, but gradually increasing, number of "2nd IVA" scenarios from people who have previously completed a VA and now find themselves in a similar situation again. Whether this indicates a recklessness on the part of lenders, borrowers (or both) or whether it is sheer bad luck in some instances is not for me to speculate, but it does prove, if nothing else, that creditors have not carte blanche gone down the route of refusing point blank to lend to individuals after IVA.

Regards.

[plasticdaft]

I remember being turned down for a bank account with RBS(O/D included)due to adverse credit. When I got my file an entry appeared for someone whos name was almost identical to mine,who had previsuoly lived at the same address, but the date they had got a credit card(very defaulted) was when I was only 14 years old so clearly couldnt be me. I took the file to RBS who said yes its clearly a mistake but we still cant give you the account.Over the road to the TSB and hey presto a new account opened that day. Sometimes I really do believe that little Britain has it so right with the "computer says no" sketch!!!

[kallis3]

I've noticed as well one or two posters who have been bankrupt and now need to enter an IVA.

I have no intention of getting into debt again - I will have spent five (possibly 6) years getting myself straight again.

I've learned my lesson.

[plasticdaft]

I wonder if age has anything to do with reoffending on the debt front. I am young enough(35 and a half!!) to be stupid with credit again and get out of it(not that I will),but others in their later years will know that if they get it wrong again they are up the creek without a paddle.

[size5]

If only advancing age were a guard against being daft PD.

Certainly that's what Mrs Size often tells me at least......


Regards.