How will an IVA impact your credit rating ?

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natalie.12

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Post by natalie.12 » Mon Sep 13, 2010 11:33 am
Hi All,

I would like to know more about how an IVA will imact your credit rating long term?

Many Thanks

Natalie
 
 

liamjames

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Post by liamjames » Mon Sep 13, 2010 11:36 am
Hi Natalie and welcome to the forums!

You are treated as defaulting on your agreed payments until the IVA has successfully completed, and at that point your credit rating will begin to recover again.

Any default can stay on your credit file for 6 years.

Take care. :)
Take care,

Liam James
Varden Nuttall
http://www.vardennuttall.co.uk

Read our reviews here: http://www.iva.com/iva_companies/Varden_Nuttall.asp
 
 

Shining

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Post by Shining » Mon Sep 13, 2010 11:47 am
Hi Natalie and welcome to the forum. Is an IVA something you're considering. As Liam says an IVA will stay on your credit file for 6 years from the date of acceptance.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Adam Davies

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Post by Adam Davies » Mon Sep 13, 2010 12:25 pm
Hi
An IVA will knock your credit rating for six years from when it starts. After that date any record of your IVA will fall off and you can start rebuilding your credit rating. Look out for any defaults placed by creditors after your IVA starts, these two will sit on your file for six years and will affect your ability to obtain any credit
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Andam Davies
 
 

danieln

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Post by danieln » Mon Sep 13, 2010 2:58 pm
once you hit year 6... and all of the items disappear do they actually disappear I mean if I did a credit report on myself in year 6 would it be empty?
 
 

kallis3

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Post by kallis3 » Mon Sep 13, 2010 3:05 pm
The IVA and any defaults prior to it should just drop off there.

You would need to check to make sure that there are no defaults registered after the date of IVA acceptance. If there are then you have to contact those creditors to get them to remove said defaults.
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.
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Broke of London

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Post by Broke of London » Mon Sep 13, 2010 3:08 pm
Running your bank account well and keeping on top of any mobile, utility and rent or mortgage payments will stand you in good stead. That's what I tell myself anyway!
 
 

kallis3

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Post by kallis3 » Mon Sep 13, 2010 3:19 pm
It will do, but you will need to check with all three CRAs at the end of the IVA to make sure the information held is correct.
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
 
 

TheMatrix

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Post by TheMatrix » Mon Sep 13, 2010 4:33 pm
Your credit file is never wiped. It is just a reflection of everything that has happened in the last 6 years, good or bad.

The only exception to the 6 years is when a company do a credit search. These searches can stay on your file for up to 2 years, whether your application is successful or not.

So any good stuff you can add to your file now can only be a good thing, as the bad stuff eventually rolls off your report after 6 years from when it was first registered.

Just make sure that when the IVA is complete all the default dates are correct on all 3 CRA's, i.e. on or before the date your IVA came into effect.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
 
 

kallis3

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Post by kallis3 » Mon Sep 13, 2010 4:47 pm
I agree that searches will stay on there and in some ways that is good so that potential lenders can see that you have not made too many applications in a short time.

Everything else will disappear from view after six years. That should be sufficient to help build up your credit rating again.
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
 
 

TheMatrix

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Post by TheMatrix » Mon Sep 13, 2010 5:05 pm
Too many credit searches, and no credit on your file, can also be an indication that something is wrong.

Any new creditor searching your file will see the searches and may decide you are not worth the risk. Either because you are overcommitted or have no history.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
 
 

kallis3

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Post by kallis3 » Mon Sep 13, 2010 5:09 pm
It can be.

The only searches that don't show up are those done by insurance companies which are usually only to check on address details.
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
 
 

danieln

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Post by danieln » Mon Sep 13, 2010 5:22 pm
ok thanks everyone!

I was just wondering if still appeared but was marked as done? But by the sound of it it is gone forever! [:)]

thanks
 
 

TheMatrix

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Post by TheMatrix » Mon Sep 13, 2010 5:25 pm
Indeed gone forever after 6 years, but doubt you'd get an account or credit from a old creditor who would probably still have records of your old accounts on their systems.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
 
 

kallis3

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Post by kallis3 » Mon Sep 13, 2010 5:59 pm
Who knows? If they only check the normal CRA's then you should be ok once everything else has dropped off the record.
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
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