Would I be better off doing an IVA if I want to rent?

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sharon251
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by sharon251 » Fri Feb 09, 2018 11:30 am
Hi, I considering an IVA but I need to find a rental property and I know all agents carry out a credit check on tenants. My current credit score is around 300 so have I got anything to gain by not getting an IVA?? My worry is that I may pass a credit check without an IVA but know that 300 is classed as low. If I wouldn't pass anyway with that score and still require a guarantor, I may as well go for an IVA anyway and reduce my outgoings? Some advice would be very much appreciated. Thanks.
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kallis3
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by kallis3 » Fri Feb 09, 2018 11:35 am
Not all agents carry out checks, especially private ones. Some ask for a guarantor and some may also want an upfront payment of at least 6 months rent in advance.

How much are your debts and do you live in a rental property at the moment?
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Foggy
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by Foggy » Fri Feb 09, 2018 11:38 am
It is difficult to give any specific advice without knowing the full picture -- but, on what you have said, if an IVA is the right way to go financially, an IVA possibly wouldn't make things harder in getting a tenancy. My credit score was in the 300's right through my IVA. You could try to rent privately, rather than through an agent.

On the finances front I would suggest a chat to a few insolvency firms to get the whole picture.
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Lisa Thomas
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by Lisa Thomas » Fri Feb 09, 2018 12:06 pm
If this is the only reason you are thinking about an IVA and BKY is actually better for you then consider moving first before going Bankrupt. That way you will already be in situ with a lease and the landlord shouldn't know about it.
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sharon251
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by sharon251 » Fri Feb 09, 2018 12:18 pm
Lisa Thomas wrote:
If this is the only reason you are thinking about an IVA and BKY is actually better for you then consider moving first before going Bankrupt. That way you will already be in situ with a lease and the landlord shouldn't know about it.


No, I have a low income with debt payment alone of 340 pcm and will take me 3-4 years at the current rate. I just need to know if a credit referencing agency would rate a score of 300 as low and therefore unacceptable for renting? If that's the case, I have nothing to lose by going for an IVA.
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sharon251
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by sharon251 » Fri Feb 09, 2018 12:21 pm
kallis3 wrote:
Not all agents carry out checks, especially private ones. Some ask for a guarantor and some may also want an upfront payment of at least 6 months rent in advance.

How much are your debts and do you live in a rental property at the moment?


I have a low income and my rent of 300 pcm (room in house), debts totalling £340 pcm (5 creditors) covers over half of my income, not counting living spend and transportation to work! So I need to weigh up if a credit score of 300 is as bad to a landlord as having an iva if you get what I mean.

Thanks.
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sharon251
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by sharon251 » Fri Feb 09, 2018 12:22 pm
Foggy wrote:
It is difficult to give any specific advice without knowing the full picture -- but, on what you have said, if an IVA is the right way to go financially, an IVA possibly wouldn't make things harder in getting a tenancy. My credit score was in the 300's right through my IVA. You could try to rent privately, rather than through an agent.

On the finances front I would suggest a chat to a few insolvency firms to get the whole picture.


Good advice, thanks. :)
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Foggy
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by Foggy » Fri Feb 09, 2018 12:23 pm
sharon251 wrote:
Lisa Thomas wrote:
If this is the only reason you are thinking about an IVA and BKY is actually better for you then consider moving first before going Bankrupt. That way you will already be in situ with a lease and the landlord shouldn't know about it.


No, I have a low income with debt payment alone of 340 pcm and will take me 3-4 years at the current rate. I just need to know if a credit referencing agency would rate a score of 300 as low and therefore unacceptable for renting? If that's the case, I have nothing to lose by going for an IVA.


If, at the current rate you are paying, you will have paid the debt within 3-4 years, as you say, I would say an IVA might not be suitable, and might even be refused. In an IVA you would be paying over 5 years.
The figures all depend on the whole picture.
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kallis3
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by kallis3 » Fri Feb 09, 2018 12:24 pm
I would certainly look at rental now - you could then think of a possible DRO.
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sharon251
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by sharon251 » Fri Feb 09, 2018 12:44 pm
kallis3 wrote:
I would certainly look at rental now - you could then think of a possible DRO.


Sorry but what's a DRO? Thanks.
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Lisa Thomas
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by Lisa Thomas » Fri Feb 09, 2018 12:46 pm
This is a test.
I have posted 2 responses but they do not appear to have uploaded...
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Lisa Thomas
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by Lisa Thomas » Fri Feb 09, 2018 12:47 pm
Okay so the test worked...

What are your total debts?

Why have you discounted Bankruptcy as an option?

DRO = Debt Relief Order.

https://youtu.be/BtgpEX5mNDg
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Keith White
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by Keith White » Fri Feb 09, 2018 1:40 pm
There are usually ways of getting a rental property with a poor credit rating - whether in an IVA or not. In terms of the debts, it is important to know how much you can afford to repay after meeting priority outgoings of rent/bills, food, travel etc. If the current £340/mth on debt repayments is affordable then best to keep paying them. If it's not affordable (after your priority outgoings) you need to find out all debt solutions, pros/cons of each, and decide which is best for you. There are companies that can help you with this.
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