If you are considering applying for an IVA (individual voluntary arrangement) you may be concerned about how this might affect your credit rating. An IVA is generally noted on your credit file and may affect the possibility of you obtaining credit in the future.
During the IVA
During the period of the IVA a note is generally put on your credit file to advise lenders as to the legal financial arrangement that you have entered into. This typically means that you are unable during this period to take out any unsecured credit. This may include things like;
* credit cards;
*personal loans;
*store cards;
*personal business loans.
This however may prevent you from getting into further debt if you are unable to meet repayments. This note on your credit file generally remains there for a period of time after the individual voluntary arrangement has ended.
If you are applying for a single or joint IVA you may wish to consider that you may not have further access to credit during the period of the IVA.
After the IVA
After the period of the IVA is over you may still have difficulty obtaining unsecured credit, or may only be able to obtain credit at a higher interest rate. Whether a lender chooses to lend you money however is their decision. Some lenders may look upon you favourably when considering lending you money as they may appreciate that you have had the discipline to repay an IVA.
IVA credit file notes
After the period of time has passed after the end of an individual voluntary arrangement, you may wish to obtain a copy of your credit report to make sure that the note of the IVA has been removed. Your credit report may show any financial history that is counting against you if you are looking to obtain credit in the future. If the note has not been removed you may wish to request that it is done so.