Should I apply for credit to boost credit score?

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Mamun.11

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Post by Mamun.11 » Fri Apr 19, 2019 4:29 am
Hi
I have completed my IVA in August last with Aperture. After chasing few times, Recently I have received an email saying that you IVA account is closed and you completion certificate will sent by post shortly.
My question is should I apply for a credit card to boost my credit score as my credit score is only 380 .

Foggy

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Post by Foggy » Fri Apr 19, 2019 8:42 am
There are different schools of thought here: One that the good standing of a well run credit account can help build a picture of reliability, which is valid. Another is that by using something designed for those of us with bad credit, we are signposting past problems --- possibly less valid as a squeaky clean credit file will also do that.
Getting a card now will not increase your credit score -- You will be on the Insolvency Register for another three months and the IVA will show on your credit files up to the 6th anniversary, along with any defaulted accounts. Have a read here: https://www.iva.co.uk/what-does-an-iva- ... dit-record --- but ... it could help in the longer term.
Also have a peek at the last few entries in my blog ( link in my signature below).
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

Radish

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Post by Radish » Sun Apr 21, 2019 1:00 pm
I applied for a credit card around a year after I receive my certificate with the hope of increasing my credit rating, I didn't know what I was doing but I tried to use it sensibly, obviously after being on an IVA I didn't want to head towards that again. I found the free credit score website a big help. My credit rating seemed to improve as my limit was increased here. I am absolutely no expert here but it seems its a slow burner and takes a while to get a credit score back up. I get offered loans every time I go onto the site and as tempting as it is to get one and have two weeks all inclusive in Cape Verdi, paying it back is not so tempting but I did have a poor score back then, and its now decent with time that's passed.
IVA complete March 2014 after 6 years.

kallis3

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Post by kallis3 » Sun Apr 21, 2019 1:09 pm
You could try a soft search which won't affect your credit rating.
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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Shaun Vickery

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Post by Shaun Vickery » Wed Apr 24, 2019 7:56 am
I definitely believe that obtaining a credit card, using it for everyday purchases, but making sure you clear the balance every month is a positive. In terms of Foggy's comments as to whether it alerts other lenders to any previous problems, in a world of lending decisions being primarily taken by automated credit score techniques, I'm not really sure that's still an issue. Just be aware that the scores provided by the credit reference agencies themselves are really just an indication of your score as lenders all have their own unique ways of calculating this....so you may score high with one and lower with another. Don't get too hung up on it.
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Chantal.01

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Post by Chantal.01 » Sat Apr 27, 2019 5:55 pm
My credit score is very low at the moment at only 290 on Clear Score. I also have no offers of any credit available to me. All I am getting are pre paid credit card options and guarantor loans which I don't want. My IVA has been completed and I am currently waiting for the completion certificate which they have advised me can take up to 12 weeks. The creditors agreed to write off the remaining debt and accept what has already been paid in a meeting on the 19th March. I have been reading that lots of people have had their scores increased and been able to obtain credit after their IVA. I'd like to know why my score hasn't increased and why I am not able to obtain credit? Is it because I need to wait a bit longer and for the completion certificate to be issued before I see the charges and can apply or is it that mine is never going to change or improve again and I won't ever be able to apply for any credit ever again? All the accounts have been removed from my report now and the debts are only my mortgage left. I have no other debts now on my file, however it still shows the IVA as active. So is this the reason? Any advice or experiences would be greatly helpful.

Foggy

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Post by Foggy » Sat Apr 27, 2019 6:13 pm
Sat Apr 27, 2019 5:55 pmChantal.01 wrote:
My credit score is very low at the moment at only 290 on Clear Score. I also have no offers of any credit available to me. All I am getting are pre paid credit card options and guarantor loans which I don't want. My IVA has been completed and I am currently waiting for the completion certificate which they have advised me can take up to 12 weeks. The creditors agreed to write off the remaining debt and accept what has already been paid in a meeting on the 19th March. I have been reading that lots of people have had their scores increased and been able to obtain credit after their IVA. I'd like to know why my score hasn't increased and why I am not able to obtain credit? Is it because I need to wait a bit longer and for the completion certificate to be issued before I see the charges and can apply or is it that mine is never going to change or improve again and I won't ever be able to apply for any credit ever again? All the accounts have been removed from my report now and the debts are only my mortgage left. I have no other debts now on my file, however it still shows the IVA as active. So is this the reason? Any advice or experiences would be greatly helpful.
First -- until that completion certificate is issued you are still in an IVA. Then, after it is issued, it will take three months to come off the insolvency register. Only then will they report the IVA as completed to the credit reference agencies. The IVA will then still show (as completed) on credit files until it's 6th anniversary.
Don't panic -- it will happen and the score will improve.
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

Chantal.01

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Post by Chantal.01 » Sat Apr 27, 2019 9:29 pm
Hi Foggy, OK. That's great. Thanks for the advice. It is past the 6th anniversary so that is good. So just need to be a bit more patient then for the certificate and then 3 months after that for it to disappear off the insolvency register. Good coz my husband and I want to get a new house together as well so I need my credit score to improve. All the other credit I have is all managed very well such as mobile phone, mortgage and utilities that show on the credit report. :D
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