Finished IVA Early

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VTwin
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by VTwin » Thu Dec 07, 2017 1:12 pm
Hi,

I had an IVA which started in 2013, my circumstances changed dramatically 2 years into the agreement so I contacted my account manager and arranged to pay off what I owed and finish the IVA early. I thought this would help my credit file and relieve the stress of having the IVA hanging over me, but it has done little to improve my credit score two and a half years on? I have tried using credit builder card, which did pretty much nothing to help. So through Clearscore I applied for a credit card which would allegedly help, which I was accepted for, and used the card to get petrol and paid it off straight away as soon as the statement came in...this has actually had a negative effect as I now have a negative that my credit limit is low.... Ive had the card over a year and the limit has not been increased? Should I close that account as I have given up using the card?

Is there anything I can do to have the IVA removed seeing as it has been finished since mid 2015? Other than the IVA I have no defaults or bad debts, but according to Experian i have only just edged into 'Fair' on my credit score?

Thanks in advance!
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Foggy
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by Foggy » Thu Dec 07, 2017 1:17 pm
The IVA will remain in your credit files until 2019 and will overshadow any attempt to improve your credit score. When it does come off the cards you have will provide a bit of positive history and you will see the credit score increase dramatically.
VTwin
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by VTwin » Thu Dec 07, 2017 1:24 pm
Thanks for your reply, Foggy!

Thats a bit disheartening to know that I paid those debts but still have another 16 months of suffering knockbacks for mortgages etc. It shows my completion date on my files, so I'm assuming I wont have to submit a completion certificate to have that removed when I hit the 6 year anniversary?
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Ryan
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by Ryan » Thu Dec 07, 2017 2:00 pm
Although some Lenders may look to offer you a Mortgage 6 years after the IVA began many won't lend for another 3 years, some will never lend following an IVA. An IVA has a very long term effect where Mortgages are concerned unfortunately.

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VTwin
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by VTwin » Thu Dec 07, 2017 2:18 pm
Thanks for your reply, Ryan.

If the IVA isn't on my credit file after 6 years from its start date, how would lenders know I have had one? If they are holding this information elsewhere then would that render a credit score completely moot, and this information should be given to people thinking of entering into an IVA.... because as far as I was informed, once the time was up everything would be fixed (for want of a better phrase). If I had been aware that this would be held somewhere indefinitely and would potentially influence lenders 10 years down the line I never would have taken one out and continued trying to negotiate payments with my creditors.
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Foggy
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by Foggy » Thu Dec 07, 2017 2:19 pm
VTwin wrote:
Thanks for your reply, Foggy!

Thats a bit disheartening to know that I paid those debts but still have another 16 months of suffering knockbacks for mortgages etc. It shows my completion date on my files, so I'm assuming I wont have to submit a completion certificate to have that removed when I hit the 6 year anniversary?



It should happen automatically -- but also check the default dates, so they drop off on time as well. Have a read here:

https://www.iva.co.uk/what-does-an-iva- ... dit-record

and also have a look at the last few entries on my blog ( link in the signature block below ) .
VTwin
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by VTwin » Thu Dec 07, 2017 2:33 pm
Thanks, Foggy!

Thats amazing to see your score jumped like that! Having said that, Ryan's post saying some lenders will never touch me for a mortgage after having an IVA is pretty concerning as I thought this information would be cleared from public record after the 6 years :cry:
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Foggy
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by Foggy » Thu Dec 07, 2017 3:55 pm
VTwin wrote:
Thanks, Foggy!

Thats amazing to see your score jumped like that! Having said that, Ryan's post saying some lenders will never touch me for a mortgage after having an IVA is pretty concerning as I thought this information would be cleared from public record after the 6 years :cry:



Lenders have differing criteria ( and those criteria often change with time and market forces). The information regarding the IVA is cleared from public record .. but there are other archived records anyone might chose to keep ... How do PPI claims firms go back 35 years ?? The mortgage dilemma also hinges on them actually asking you outright -- some ask have you ever been in an IVA ? Some posters have, in the past, questioned the need to tell the truth, but I would always counsel to be honest --- you never know if a lie might come back to bite you and undo all the good work you have put into getting straight.
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luluj
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by luluj » Thu Dec 07, 2017 7:03 pm
Specialist advice is needed re mortgages. Ryan comes highly recommended and would I am sure explore your situation with you fully.
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