Credit Score after IVA

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Desperate Bob

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Post by Desperate Bob » Sat Mar 14, 2020 11:49 pm
Hi All,

I finished my IVA in 2017 with a full and final settlement, my iva started in 2014 and I have just received an update that the iva has dropped off my credit file from a credit reference agency.

The thing I am confused about is my score, it was 450 and it has now dropped to 390 even though there is no negative factors on my report, just wondering if anyone could explain why this has happened, I do have a credit card that is paid off monthly so just a bit confused at the moment.

Many Thanks for any advice.

Bob

Foggy

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Post by Foggy » Sun Mar 15, 2020 10:10 am
Credit scores are, bottom line, pretty much meaningless to prospective lenders -- they don't see them and base their decisions on actual history and circumstances. They are a bit like the stock market and will drop when even a hard search is made, then recover when the debts are being managed correctly. They will drop if your credit card balance exceeds 50% of the credit limit, or if you have too much credit available, albeit not being used. It could even drop when you close an account. Your IVA and defaults have dropped off --- so you have less of a history, so more room for doubt ... score drops. It will recover in time and with a good history building up.

Remember, 99.9% of the time, this score is calculated by a computer, with no reference to real life.
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

abbiesmum2003

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Post by abbiesmum2003 » Sun Mar 15, 2020 10:46 am
Agree with foggy.
Register for Credit Katma (its free).
But its got some really good features that gives you a breakdown of elements which affect your credit rating in a red/amber/green fashion. Really easy to understand.
Clearing credit card balance seems to actually go against you believe it or not! lol!
Meant to use about 25% of available credit and have available credit to show lenders you are responsible.
Ours was 266 at one point now up to ‘excellent’. Takes time and patience and basically playing the system!

kallis3

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Post by kallis3 » Sun Mar 15, 2020 11:03 am
Clearscore as well.
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

abbiesmum2003

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Post by abbiesmum2003 » Sun Mar 15, 2020 1:10 pm
Ive got everything Kallis! lol!
The reason i suggested credit karma is theyve just upgraded it and its gives you this fab breakdown of what youre red, amber or green with!
So electoral role gives a green but im amber for credit limit because ive only got X amount....if I increase to Y amount my score will rise! And amber if use over 25-50% of available credit. Its really helpful to see what areas to improve on.

kallis3

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Post by kallis3 » Sun Mar 15, 2020 6:26 pm
I have Money Saving Expert as well. Check them all every month.
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

Desperate Bob

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Post by Desperate Bob » Sun Mar 15, 2020 11:25 pm
Thanks all, I understand it better now.

luluj

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Post by luluj » Mon Mar 16, 2020 1:39 am
Credit karma is really useful - find that the best tbh
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"
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