IVA and credit file
We have 18 months left on our IVA and our IVA company have offered us a loan to clear the balance and allow us to close our IVA within 3 months. They said this will take us off the insolvency register within 3 months and we will receive our certificate. We are keen to start rebuilding our credit rating so we can get a mortgage again. Is this a good way to do this? Will the IVA stay on our credit file for 6 years anyway despite paying it off early and receiving the certificate? Will being off the insolvency register allow us to build our credit rating back up earlier? Any advice would be much appreciated, don't know what to do!
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Comments
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No, paying it off early would have little benefit to you.
It will still stay on your credit file for 6 years, you may get off the insolvency register a bit sooner, but creditors don't look at that.
All you are really doing is extending the time you are in debt.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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