Credit Score Post-IVA

sallylouise12

Hi Money Saving Experts

I entered into an IVA in 2006 and this was completed in 2008 after I paid a final settlement.

In early 2009 I applied for a UK bank account with HSBC and it was declined. I just thought it was due to the closed IVA. However, since then I discovered that 6 of my creditors had never updated my credit files with Experian and Equifax so it still showed as though the accounts were delinquent. This has all been updated now and all my accounts show as settled.

My question is would this make any difference to a new application for a bank account?

Hope you can help

fermi

Maybe. But to be honest the biggest black mark will be the IVA. As far as your credit record is concerned, it is not really much better than having a bankruptcy there.

By all means use the sticky on this board to get your CRFs sorted, but you may still have problems getting a full current account until the IVA drops off.

There are many 'basic' accounts that offer almost as much as a current account now. Just no OD or chequebook. You shouldn't have a problem getting one of those accounts.

sallylouise12

Thanks for the quick response fermi!

It was the sticky that first drew my attention to the fact my credit files were incorrect so I know that they are all accurate now.

In your opinion, would it be better for me just to "sit tight" with my current bank rather than having a failed application? Am I right in thinking the IVA will drop off in 2012 i.e. 2006 + 6 years? Or is it 2008 + 6 years? Is there anything I can do in the meantime to try and improve my credit health?

Any advice would be greatly appreciated. I'm still sure the IVA was the right thing for me at the time I just wish I had understood more about the aftermath. I've never managed to get a good understanding of finances but I am trying to become more savvy!

Thanks in advance.

memberme

I have a normal account during my IVA. The law states it is illegal to have credit and an overdraft, It does not mind if the fascility is there but never used..It is the using that is the problem. So I still have a normal premier account and no quible from the IP

fermi

memberme wrote: »

I have a normal account during my IVA. The law states it is illegal to have credit and an overdraft, It does not mind if the fascility is there but never used..It is the using that is the problem. So I still have a normal premier account and no quible from the IP

Did you open that before the IVA? If not then I suspect you might have trouble with a new one.

Then again, there are always exceptions. I know of a few bankrupts who have by chance managed to get a full current account/credit shortly after their BR ended. But that is the exception rather than the rule if you see what I mean.

memberme

As pre IVA arrangment I opened a new account. I was told later it should have been a basic account but had already done it by then so the iva did not show at that stage,,,the best time to open one is just before signung up.I had never missed a pyamen t on anything else so although my debts had affected my rating I had no bad things on file at that time. My Ip told me to open it before I signed the paperwork

memberme

That was the only change to a current account I have ever done...ie my existing one was 20odd years old. I am happyier with this one so I don't think I'll ever need another

fermi

memberme wrote: »

My Ip told me to open it before I signed the paperwork

Good call.

doelani

HI

Even if your CRF is marked as satisfied on your accounts the default still shows for 6 years from the date of the IVA.

Even though the accounts are all settled make sure the default date are aff on or before the date your IVA started.

I was able to get a full current account a few montsh after my IVA was completed early byt going to a local bank, being honest with them about teh IVA and showing them my bank statements from my halifax easycash account I had suring the IVA. I did have this account and as it had no overdraft and it was not included in IVA I just cahnegd over and used it.

Charco_2

Does it really have to be the HSBC?

Some banks are... snobbier than others!