How Long will an IVA remain on my Credit Rating ?
During the time that you are in an Individual Voluntary Agreement (IVA) you will not be allowed credit as you need to repay your outstanding debts. However once you have completed your IVA you will be able to apply for credit should you wish.
All of your debts that were included within the IVA should be listed as satisfied by each of your creditors upon completion of your IVA. Please be aware that all negative information will stay on your credit file for around 1-6 years.
Checking your credit report
Once you have finished your IVA you may wish to check your credit report to make sure that it is all correct. If you wish to do this then you can contact one of the main credit reference agencies to ask them to send you your credit report. These include Experian and Equifax Plc and it will typically cost you £2 to do this. Some services offer free credit reports.
The effect of an IVA on your credit rating
Many people may think
that an IVA is an easy way out but it can take a lot of hard work and commitment to complete successfully. There will also be some effect on your credit rating so make sure that you are aware of this when you enter into an IVA.
You will find that a record of your IVA will remain on your credit file for up to 6 years. When you are in an IVA you will not be allowed to take on any form of credit anyway but when you complete it you should think carefully about whether obtaining any more credit is the right thing for you to do. You may find that you need to remortgage during your IVA and if this is the case then you should be prepared for the fact you will likely have to pay a higher rate of interest.
It is important to remember that if you do apply for credit again, that you use it responsibly and wisely. You do not want to get yourself into debt problems all over again, so think carefully before applying for credit of any sort.