Can I apply for any payday loans with an existing IVA ?

Get expert opinion. This is the place for new questions to be posted.
11 posts Page 1 of 1
User avatar
laura609
Posts: 1
by laura609 » Thu Dec 21, 2017 4:49 pm
Can I apply for any payday loans with an existing Iva and I'm working . I've been declined once because of it today
User avatar
Foggy
Forum Expert
Posts: 27494
Contact
by Foggy » Thu Dec 21, 2017 5:02 pm
NO!
You are sometimes (check your paperwork) allowed credit up to £500, if you could get it -- but the only lenders who will lend to someone in an IVA will be the sort to charge the earth and break your legs if you miss a payment !
Payday loans are a no-no and will get you deeper into trouble.
The burning question is why do you need them ?
User avatar
kallis3
Forum Expert
Posts: 73799
Contact
by kallis3 » Thu Dec 21, 2017 6:35 pm
I agree - you should not need to apply for a Payday loan. If you are having problems, please contact your IP and sort out your I&E
User avatar
luluj
Forum Expert
Posts: 10301
Contact
by luluj » Fri Dec 22, 2017 4:51 am
A review of your IVA and a request to stop payments temporarily if the reason needed is to repair, replace household items or car repairs - if the reason for needing a loan is for general day to day living and christmas expenditure the answer may well be no.
User avatar
Shaun Vickery
Industry Expert
Posts: 747
Contact
by Shaun Vickery » Fri Dec 22, 2017 10:08 am
I agree with previous comments, the fact that you require a pay-day loan suggests you are unable to make ends meet and therefore probably worth reviewing your income and expenditure. I'm not a big fan of pay-day loans although I do appreciate sometimes needs must. They can also have a detrimental affect on your credit file, which you may argue isn't an issue at this stage given that you have an IVA, but you also need to consider the longer term implications. Some mortgage companies for example may consider an application from someone who has had an IVA but not someone who has used pay-day loans in the past.
GottaGetThruThis
Posts: 21
by GottaGetThruThis » Sun Dec 24, 2017 1:05 am
Shaun Vickery wrote:
you also need to consider the longer term implications. Some mortgage companies for example may consider an application from someone who has had an IVA but not someone who has used pay-day loans in the past.


Are you saying mortgage companies consider satisfied (part paid by formal arrangement) insolvency to be better than settled (paid in full) HCSTC?
User avatar
kallis3
Forum Expert
Posts: 73799
Contact
by kallis3 » Sun Dec 24, 2017 9:07 am
I believe he is saying that once you have completed you will be considered for a mortgage. Don't forget that some will ask if you have ever been insolvent and you may find that interest rates are higher.
User avatar
Foggy
Forum Expert
Posts: 27494
Contact
by Foggy » Sun Dec 24, 2017 10:08 am
I read it as Shaun is saying that an IVA on the record is viewed --- by some --- as a lesser evil than multiple PDL's. An IVA signals a breakdown and responsible attempt at recovery, many PDL's indicate the inability to manage your finances is an ongoing problem, in their eyes.
GottaGetThruThis
Posts: 21
by GottaGetThruThis » Sun Dec 24, 2017 11:31 am
Thanks both for clarifying.

So if PDLs are in an IVA then should this be interpreted as you're best waiting the 6 years for the PDLs to drop off from the IVA start date?

Would a higher deposit in future (e.g. trust or inheritance after IVA completion) offset this time at all or is the 6 year wait set in stone?
User avatar
kallis3
Forum Expert
Posts: 73799
Contact
by kallis3 » Sun Dec 24, 2017 11:45 am
If you are in an IVA, it will remain on your credit record for six years from the date of acceptance regardless.
User avatar
Foggy
Forum Expert
Posts: 27494
Contact
by Foggy » Sun Dec 24, 2017 12:00 pm
GottaGetThruThis wrote:
Thanks both for clarifying.

So if PDLs are in an IVA then should this be interpreted as you're best waiting the 6 years for the PDLs to drop off from the IVA start date?

Would a higher deposit in future (e.g. trust or inheritance after IVA completion) offset this time at all or is the 6 year wait set in stone?


If you have any adverse entries you are always better served by waiting for them to drop off your records --- the cleaner the file, the more lenders and better deals will open up for you. A higher deposit always helps, either to give the lender more confidence or to entice them to offer better rates. Before the 6 years / clear file mark, all lenders will regard you with some reticence, some will not even look at you ---- it all deopends upon the lenders own criteria (which vary all the time, according to market forces).


Patience is the key and not getting bogged down by thinking too far ahead of yourself --- sort out the debts ... clear the files ... look for mortgage ...... all in due time.
11 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: Bing [Bot], kallis3 and 25 guests