Credit building credit cards before Iva completion

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Jo1979
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by Jo1979 » Fri Aug 04, 2017 12:56 pm
Hi there,
We are in the final few weeks of our Iva last payment will be end of August it's been 6 long years! My question is if anyone can help is can I apply for a credit building credit card now before I receive my completion certificate? I want to start repairing my credit file asap as we desperately need to change our mortgage which is currently a standard rate 5% interest only! Am I allowed to do this or do I need to wait for my completion certificate? Thanks in advance!
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Foggy
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by Foggy » Fri Aug 04, 2017 1:00 pm
You are bound by the IVA terms until the completion certificate is issued. I would wait until then and until you are off the Insolvency Register (to be on the safe side) as the searches will stain your files again if refused.

Have a read here:

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

Also have a look at the last entries on my blog -- link in signature block below --- about my rebuilding efforts.

And .... Well Done on getting this far !!!
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Jo1979
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by Jo1979 » Fri Aug 04, 2017 1:06 pm
Thanks so much for the speedy reply! I'm just so impatient haha! It's been a long time coming but the end is within reach .... this site has been a godsend to me over the last 6 years. I haven't posted much but I have read ALOT!
Thanks again for all your hard work!
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Ryan
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by Ryan » Fri Aug 04, 2017 1:09 pm
Jo,

If you are trying to do the Mortgage asap it's probably worth hanging fire re the credit card as applying for it may actually lower your score in the short term. The most important thing for the Mortgage would be that you have checked all 3 of your credit reports (Experian, Equifax and Callcredit/Noddle) to make sure they are all clear and up to date.

Regards
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Jo1979
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by Jo1979 » Fri Aug 04, 2017 1:17 pm
Thanks Ryan!
We are hoping to sort out the mortgage by the spring next year. I just hope our ip doesn't drag their heels with our Completion certificate. Last payment end of August. So worse case scenario would be 6 months so end of feb for Certificate.. but hopefully it will be sooner than that !!
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Jo1979
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by Jo1979 » Fri Aug 04, 2017 1:30 pm
One question for you though Ryan if it's not an impossible one to answer we currently have 55% LTV so will this make a big impact on our ability to get a remortgage after the Iva or is it insignificant given the inescapable fact we were in an Iva ?
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Ryan
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by Ryan » Fri Aug 04, 2017 1:37 pm
The loan to value will have an impact on the interest rate in that you will be looking at the lowest rates available but it wouldn't lead to Lenders who won't lend at 90% lending to you. Lenders either lend at certain points following an IVA or not - the loan to value wouldn't encourage Lenders to alter their criteria re IVAs. I hope that makes sense.
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Jo1979
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by Jo1979 » Fri Aug 04, 2017 1:39 pm
Perfect sense thank you!
It's good to know that "hopefully " we will be able to secure a reasonable interest rate post Iva. Fingers & toes crossed!
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Ryan
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by Ryan » Fri Aug 04, 2017 4:09 pm
Better than reasonable at that loan to value.
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Lisa Thomas
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by Lisa Thomas » Tue Aug 08, 2017 11:34 am
Personally I would wait until you have your CC and have come off the register.

You might find this quick video I made about cleaning up your credit record useful:

https://www.youtube.com/watch?v=PV4RzUY4BRM

Noddle and Clearscore are also free credit agencies to consider using:

https://www.noddle.co.uk/
https://www.clearscore.com/
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