How do you improve your credit rating after an IVA?

Sturdy

With huge relief, I am about to complete my IVA.

However, I'm not really sure what to do now. I know my credit rating is trashed, but how do I go about rebuilding it? I understand that being rejected for credit will worsen my rating and applying for a lot of credit will affect my rating too. Are there any companies who are happier to accept higher risk customers?

I know this is going to be a slow process, but has anyone got any pointers?

I've heard that pre-paid cards are good for your credit rating? Is this true? Would I benefit from using a pre-paid to pay all my bills each month (i.e. a high transaction level) or doesn't that register?

happychappy74

The end is nigh.......Well done.

I was lucky enough to end my IVA early and have found myself just ahead of where you will be.

The most important thing is to obtain all 3 Credit reports to make sure all the IVA/Default dates are correct as I have found some of my info was horrendously wrong. If there is anything wrong........chase it up.

I took out the CashPlus card and added the CreditBuilder facility (takes a few weeks). This is the only pre-payment card that offers a credit facility that I have found. It costs £4.95 per month and the CreditBuilder part is an advance loan of the yearly payments for the total sum that is then deducted from the card, as per normal. This is reported as a loan on your credit reports (I can vouch for it having had 5 months reported on Experian).....Yay!!!

I took out a Vanquis credit Card after 2 months. Not the best interest rate but keep it simple (petrol/food then paid in full) and it wont make any difference.

I took out a 3 £10 per month sim only deal (as no-one else would accept me) and that is showing each month on my file.

I have just been accepted for loan through a work related Credit Union loan to address normal household debt, which is well within managable monthly finances. This will again show positively on my file.

Just consider all 'normal' credit facilities out of reach until after the IVA has dropped off your file and you wont go far wrong. Make sure the info is correct and then apply sensibly (few and far between) and you will rebuild sensibly.

All the best.
:j:j:j

Experian_company_representative

The IVA drops off your credit report after six years. As it ages, its impact on your credit score will lessen. If you want to see what credit you have a good chance of being accepted without applying, you can use the Lowermybills comparision tool from WITHIN the CreditExpert (Experian) site, as it matches your Experian credit report to products you're likely to be accepted for.

Being rejected doesnt harm your credit score because credit decisions aren't actually registered on your credit report. But the credit search footprints are and if you apply for lots of credit in a short space of time this can impact your score. Interestingly, a few credit search footprints will probably help your score.

James