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Doug2040
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by Doug2040 » Fri Nov 10, 2017 9:26 pm
Hi, I was wondering whilst on an IVA are you able to use your Very account if you stay within the £500 credit limit you get with an IVA?
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Foggy
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by Foggy » Fri Nov 10, 2017 9:31 pm
In theory -- but I wouldn't recommend it -- the £500 limit is generally accepted to be used to cover utilities on credit meters, car insurance on installments and the like. If there is anything outstanding on the account at the start of the IVA it should be included in the arrangemebt and would therefore become closed to you anyway.
Doug2040
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by Doug2040 » Fri Nov 10, 2017 9:35 pm
Foggy wrote:
In theory -- but I wouldn't recommend it -- the £500 limit is generally accepted to be used to cover utilities on credit meters, car insurance on installments and the like. If there is anything outstanding on the account at the start of the IVA it should be included in the arrangemebt and would therefore become closed to you anyway.



I didn’t think car insurance was classed as credit as you can cancel anytime. What happens if your car insurance is more than £500?
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Foggy
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by Foggy » Fri Nov 10, 2017 9:47 pm
Doug2040 wrote:
Foggy wrote:
In theory -- but I wouldn't recommend it -- the £500 limit is generally accepted to be used to cover utilities on credit meters, car insurance on installments and the like. If there is anything outstanding on the account at the start of the IVA it should be included in the arrangemebt and would therefore become closed to you anyway.



I didn’t think car insurance was classed as credit as you can cancel anytime. What happens if your car insurance is more than £500?



Different insurers fund monthly installments in different ways, but the most common is, in fact, a credit agreement with hefty cancellation charges. As things like insurance are a requirement rather than a choice it is not generally examined in too much detail.
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kallis3
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by kallis3 » Fri Nov 10, 2017 9:49 pm
It is classed as credit by insurance companies but is generally allowed. A credit account for anything else might not be looked favourably on.
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