Why can't i get credit?

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martin833
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by martin833 » Wed Sep 27, 2017 5:12 am
Why can't i get credit immediately after completing IVA?
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sheraz.butt
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by sheraz.butt » Wed Sep 27, 2017 6:27 am
Once you have completed your IVA, you should receive a completion certificate to finalise and close the case. Have you received this?

The IVA remains on the credit report for 6 years in total so it is then generally a case of building your credit up again. If you try and apply for a large amount of credit, that would be more difficult to get as it needs to be rebuilt slowly. As you can imagine, things like mortgages or large loans will be more difficult to get immediately after you have finished.
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Foggy
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by Foggy » Wed Sep 27, 2017 6:56 am
As Sheraz says, the IVA will be on file for 6 years after the start date of the arrangement, you are also on the Insolvency Register for three months after the issue of the completion certificate. Remamber as well -- until you get that completion certificate you are still in the IVA, albeit no longer making payments.

When all the records drop off you will have a clean sheet -- which is a problem in itself. Lenders like to see a history ... demonstrations that you can handle credit and will pay it back. So, start small and get a good, stable, history. Avoid large loans to start with as well as too many applications. And ... avoid payday lenders like the plague !

Have a read here:

https://www.iva.co.uk/what-does-an-iva- ... dit-record
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Lisa Thomas
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by Lisa Thomas » Wed Sep 27, 2017 8:34 am
You might find this quick video I made about cleaning up your credit record useful:

https://youtu.be/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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Ryan
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by Ryan » Wed Sep 27, 2017 1:12 pm
With regards to Mortgages Lenders criteria's vary and also many rely heavily on credit score. We have certainly managed to obtain Mortgages for many Clients who have recently completed an IVA.

Regards
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MerlinL14
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by MerlinL14 » Wed Sep 27, 2017 3:50 pm
Even after all your defaults have dropped and it looks like you have a half decent score, you have no history in your file. This will be as much a red flag as it still saying you are in an IVA
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kallis3
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by kallis3 » Wed Sep 27, 2017 5:12 pm
As regards credit - do a 'soft search' if you are looking at a credit card - does not show up to other creditors and will show whether or not you will be accepted.
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