Will I ever get credit again? IVA Issue
Summary: Will I ever get credit again? - This article considers the implications for future credit for those undertaking an IVA (Individual Voluntary Arrangement).
Once your IVA ends, the Insolvency Service will let the credit reference agencies know. The agencies will then update the IVA entry on your credit report to show it has been 'completed'. The entry then stays on your credit report for six years from the date the IVA began. You might continue to experience difficulties getting credit and other financial services in the immediate future, because you were in an IVA in the past. If you do manage to find someone who will lend to you, it is likely that they will see you as a high risk customer and they may charge you a higher interest rate as a result.
All UK Insolvency Company representative firms issue customers with a letter of completion and a certificate of compliance stating that the Voluntary Arrangement has been successfully finalised. This can then be shown by the Debtor to any third parties who may enquire concerning the Debtor's credit-worthiness.
How does an IVA affect my credit rating in the future?
You are not instructed further credit whilst you are in an IVA because you are working to a strict budget. You are free to apply for credit after your IVA is completed. To ensure your file is updated send a copy of your completion letter (from your supervisor) to both credit reference agencies. All of of your debts covered by the IVA should be marked as satisfied by each original creditor when your IVA is completed.
Rebuilding your credit score
The existence of the IVA should be removed from your credit file after 6 years, and you can set about repairing your credit file. There is no reason at all why you should be prevented from obtaining credit. Non homeowners in an IVA are often concerned that they will be barred from ever having a mortgage in the future, but this is not so. Once the terms of the IVA have been successfully completed, and the credit file repaired, there need not be any obstacles to future credit.