My IVA is coming to an end shortly (deep sigh!) and decided to look into my credit score (possibly should've done this alot sooner after reading foggy's credit write up).
Using Credit Karma, I'm surprised that my score is that high (531/710) considering the IVA, is this something to question/worry about? I've checked and all the accounts that are included within the IVA are all defaulted & dates within the start date of IVA, nothing looks unusual - apart from the score...or is 531 actually bad?
Also I'm looking to move house in the future, I'm slightly confused on some posts I've read where getting a new mortgage / remortgage can be difficult or sometimes impossible with certain lenders even after the 6 years of everything dropping off your credit file - how do lenders know you've been in an IVA after 6 years? (Assuming at this point the 3 main credit agencies have been informed of IVA completion & everything is in order within your credit file)?
My understanding was I'd find it extremely difficult getting a remortgage after finishing my IVA (5th year) because the IVA stays, along with all the defaulted accounts for 6 years, but then after it's a clean slate - albeit possibly with a rubbish credit score or an unknown credit score.
If the defaults are all registered as the start of the iva, then you need not worry. The score is neither here nor there right now.
As soon as you reach the 6th anniversary and defaults start to disappear you will note your credit score go upwards, quite quickly.
You would be best placed to talk to Ryan and or Shaun, our forum mortgage experts, who will help and support you through getting a remortgage in the future. While the iva is on your record it may be more difficult hence the need for expert help.
I can personally vouch for the services of Ryan and his team having used them for the last 10 years now since our iva completed.
There contact details are in their profiles under ask the experts or the links below
Do you know if it's possible to improve your credit score once the IVA has finished but not completed, so between year 5 and 6?
I was looking into something called Loqbox, which is a saving/loan thing which you pay monthly into but they also report to the main credit agencies each month so in turn improving your credit score, I guess it's an alternative to getting a credit card to build back up to a better score. Wasn't sure if this would be pointless in doing at year 5 (all defaulted accounts still on record) or could it still have a positive effect?
Thanks for the contacts regarding remortgage, I'll probably get in touch with one early next year
The numerical credit score is really meaningless -- potential lenders do not see it. What they see are the hard facts --- your history. You can build a better credit score ( slightly) by using credit building products. A creditor, however, looking to lend, will recognise these products for what they are. Loqbox is a purely artificial device whereas the likes of Vanquis do, at least, give a real impression of how you handle credit and are more seriously looked at.
I used Vanquis before my credit record cleared and 'converted' to a High Street card as soon as it did (in actual fact my bank offered to do so before I had even asked). The trick is to do things slowly.
As for the "how will they know about the IVA after 6 years" --- I do not know, but I suspect there are archival records floating around out there. PPI claims firms seemed to manage to go back decades !
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
Well done on getting this far, i am sure it has not been easy!
Please do not believe the Myth, that getting credit repairs your credit score, or other nonsense on the Web. We work with Loqbox and it is a good system, but again, if not needed, please do not jump in to it.
We help people repair their credit ratings all the time, so they are ready to get a mortgage on on Day 1 after the 6yrs have ended, it can be done even whilst still in the IVA.
Happy to help if you need
IVA Mortgage Expert
Zebra Money Centre
Thanks Ryan & foggy for the replies, most helpful.
I was looking at Loqbox purely because I can save and also repair credit at the same time (so I thought), instead of going down the CC route.
I was planning to see what what my current mortgage lender would say for a remortgage (after IVA finished but not complete) but I'm not it's worth it and instead wait at least a year to possibly get a better rate
Have a conversation with Ryan off forum and see the advice he gives. As a broker with years of experience helping those of us who have been through iva's, there isn't alot he doesn't know, and certainly knows which lenders are more likely to be approachable than others.
Don't rely on your existing mortgage company in my opinion.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !