Will an IVA affect to my credit rating?
 
Many people are reluctant to get an IVA and one of the reasons for this is that they are concerned about the affect it will have on their credit rating.

IVAs do affect credit ratings. However, people who are in a position where they are considering an IVA will already have damaged ratings; they have borrowed too much money and have run into financial difficulties.

An unfavourable credit rating will affect your ability to borrow. At this point though, you should not be thinking about borrowing any more money. Financial institutions may be willing to extend secured credit to people with IVAs so the damage to your credit rating isn�t as severe as bankruptcy.

An IVA will assist with getting your credit rating to acceptable levels quicker than filing for bankruptcy would. If you have taken on an IVA, the information will remain on your credit report for 6 years, even though the IVA term is 5 years. After this 6-year period, all details of your IVA will be removed from your credit report. This means that you can start the process of repairing your credit rating.

It is possible to make a lump sum payment towards your IVA if you receive a windfall. This will help to repay the debt to your creditors more quickly shorten the duration of the IVA.

The IVA will be overseen by an Insolvency Practitioner who should send a copy of your completion letter to the UK�s credit reference agencies. This allows the agencies to update your details, helping you to be approved for credit on favourable terms in the future.

Do you qualify for an IVA?

For more information see:
What is an IVA?



 
 
     

 

 
Action Bar

IVA help ForumThe IVA Forum: Top 30 Hot Topics
 
Active Topics on IVA Forum
F&F Settlement (by: RLG0891)
<t>Will I be able to change my name whilst in an IVA?</t> (by: louise729)
<t>Debt transferred to Cabot - how will this affect my IVA?</t> (by: jean821)
<t>Disclosing PPI?</t> (by: david539)
<t>Settling my IVA</t> (by: Zebra555)
<t>Could an IVA work for me?</t> (by: Ross poldark)
Credit Report Still Looking Bleak (by: katieweeks1)
<t>Can I do a DRO instead of an IVA if I am not named on mortgage?</t> (by: samantha273)
mortgage question (by: Mark Bruton)
Life changes (by: Mrs_Brown)
Proof of pension contribution (by: rhythmb)
<t>Feeling ripped off</t> (by: iain200)
<t>How do I complain about my IVA company?</t> (by: samantha273)
<t>How long will IVA stay on my credit file?</t> (by: holley136)
<t>Bank account frozen</t> (by: rianna)
Bank staff (by: Francesca)
<t>What can I do about my debts?</t> (by: OA234)
<t>Hi Im currently in an Iva.i</t> (by: nathanandnoah)
PPI Refund (by: anap)
Rock and a hard place (by: Digger)
Vehicle insurance cancelled (by: ElliesDad)
<t>removing a restriction</t> (by: travena)
PPI After IVA Completion (by: Chrisdude)
Working hours (by: Nickibu82)
<t>What do they mean by final checks on my IVA?</t> (by: derek797)
<t>Will HMRC contact IP about drawing a pension?</t> (by: wayne919)
<t>Problems with Freeman Jones IVA</t> (by: CZ75)
<t>Have been advised to release equity but don't understand</t> (by: sandra532)
<t>IVA payments have been increased to a level I can't afford</t> (by: hazel630)
F&amp;F SETTLEMENT ADVICE (by: Dan2991)
Forum BrowseForum JoinForum Search

Free Debt Guides
FREE useful guides!