So I’ve been out my iva a while now after taking a loan offer . Which has been great. I’ve had money again without the fear of thousands of debt balancing on a fine wire.
But oh my gosh my credit score is abysmal . Worst example being on Experian.
Anyway my 6th year since taking out the iva is at the end of March next year which if I’m not mistaken means all trace of the iva is rubbed from the report ? ( I mean I still suppose an imprint of sorts will always exists ?). I have a credit card again I use sensibly and after a year I was given a small limit increase which I’m told is a positive as long as you respect it . I also have car finance again and the remaining 2 years of the loan to pay off. Everything is paid for each month and I’m just ticking along comfortably .. ish . Certainly nothing like I used to pre iva.
Should I expect much change at all once the 6 years is up? ( btw clear score is a terrible service with gaping holes they claim comes from equifax yet when you visit equifax those holes don’t exist . Deleted their pointless app for future . Credit karma has been great though .
I think credit rating is shot until IVA and defaults are removed from your report as you say 6 years after IVA started.
Check all acvounts amd defaults to
mkae sure dated around time of IVA starting so they alk disappear at 6 years.
Your rating ahould rocket once its gone and only positive elements exist.
We are a year out of our IVA now (made it to the end and did equity release ) our credit scores are all excellent (620’s with clearscore, 960’s with expedian). Report all clear and like you use credit responsibly. Just check report and make sure its all dates correctly so next year you have a clean slate and watch thay score rise.
It will be a different story come March ... between now and then just ensure default dates are all your iva start date not later ... they will then all drop off within a few weeks, depending on when the credit companies update their records... the fact you have new lines of credit already is showing that you are making progress ...
The iva does disappear.... 12 years since our iva started ... now mortgage, car lease, credit card and a loan for home improvements ..all managed each month effectively- keeping head above water !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
It should improve come the 6th anniversary. Again check any default dates are on or around that start date, so they go too. Once the loan is repaid and you have a green, glowing, completed loan on your history the score should improve again.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk
Don't be too concerned about the credit reference agencies own scores - they are only indicative and lenders have their own, unique, scoring techniques. Just make sure that any defaults relevant to the IVA don't date after the IVA date, make sure you are registered on the voters roll, and continue what you are doing!
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.