www.iva.co.uk

i currently have an iva only had for a few mnths and will be paying £264 each mnth for the next 5 years...... after the 5 years and the debt has been cleared am i able to apply for credit??? or because i had an iva has this affected my future credit

thanks

Hey ribena, welcome to the forum. Your credit rating will be rubbish for six years from the start of your IVA, then it will drop from your file. X

Hi Ribena33 and welcome to the Forum.

Once your IVA has finished, your credit record will be pants for another 12 months (6 years in all),then you will have to build up your credit again.

You will be able to apply for credit as soon as your IVA has concluded, but be prepared to pay a high interest rate as you will still be viewed as a credit risk until the entries drop off the CRA registers at the six year point.

just out of interest...how do you "build up your credit again"..i have also seen stuff that there are firms who can "clean up your credit files"?

It's really just done by getting a credit card with a small balance and regularly using but regularly paying off the balance.

If you are a homeowner, then regular, on time, payments to your mortgage/second charge etc will build up your credit rating far quicker than getting a small credit card and paying off the balance etc.

Avoid further credit, though, at all costs if you can. Whilst that might seem an obvious statement to make, I am now dealing with a substantial number of "2nd IVA" cases. Please, please, please do not fall into the same trap again.

Regards.

thanks for info...we wont ever fall into this trap again..its not even a "Trap" its a deadly noose.!!!!...altho never been in an IVA before we have regularly been in a "mess"...so wont ever do this again...not after 5 years of this....plus...we are too old now.!!! by the time we get out of this IVA in 3 years time my OH will be kicking 60...so ..no chance

just wanted to know as at some point re credit history as we may want to sell our home and downsize...altho the dont come much smaller than our present house unless we go for a shed in bottom of garden LOL

i cant imagine how bad it must be for those in 2nd IVA s

would it not be harder to have an IVA second time around.. I would have thought would be no sympathy if not learnt from first mistakes

It isn't ideal, but I can't say that there is a significantly higher rejection rate, in fact there is no real difference at all. Thankfully, whilst being significant, these cases are still small in terms of actual number.

Regards.