How does an IVA affect your credit rating?
An IVA will impact your credit rating in a number of ways:
- You may find it hard to get credit for six years from the date your IVA began
- You must get written permission from your insolvency practitioner (IP) if you want to take out more than £500 worth of credit during your IVA
Details of IVAs are listed on a public register called the Individual Insolvency Register.
- The Register is available to search online for free
- Anyone can access the register, but it is unlikely that anyone except the people you owe will search it
Find out how IVAs can affect you in other ways.
Clare Lindley and James O'Carroll of StepChange Voluntary Arrangements are licensed to act as insolvency practitioners in the UK by the Insolvency Practitioners Association.
How long does an IVA stay on your credit file?
An IVA will show on your credit file for six years from the date it begins.
Can I get a credit card with an IVA?
If you have a poor credit record or little credit history, you may:
- See a lot of advertising for credit cards
- Get targeted marketing to encourage you to apply for a card
It is not recommended to take out further credit after paying off your debts.
You must get written permission from your insolvency practitioner (IP) if you want to take out more than £500 worth of credit during your IVA.
How can I improve my credit score after an IVA?
You may be tempted to apply for credit after your IVA, to try to repair your credit score. But, this could be expensive and hard to pay back.
There are other positive steps you can take during and after your IVA, to improve your credit score, such as:
- Regularly check your credit report: So you can correct any information that is wrong
- Register on the electoral roll: To help future lenders know you are
- Pay your bills on time: Bills such as your gas, electric and mobile phone contract may appear on your credit report. This depends on how you pay them