Rebuilding my credit score during my IVA

dollarman

Hello everybody,

Looking for some advice on preparing myself for life after my IVA as I intend to get a mortgage. Is it advisable to try and repair my credit and build my score during my IVA? (I have just over 25 months to go before its due to end)

I was thinking of using the creditbuilder facility on My Cash Plus credit card.

Are there any other facilities I can use to repair my credit while I'm still on my IVA?

Thanks

moneysavingplumber

As the Creditbuilder facility involves My Cash Plus actually lending you the fees, I would have thought that would constitute acquiring credit, which is forbidden without the written agreement of your IP. Given your reason for wanting this credit, I can't imagine a supervisor allowing this. The only credit I was allowed to retain were my trade credit accounts with suppliers, and instalment plans on insurance policies, neither of which report to CRAs.

I could be wrong but that's my take on it. The best things to retain in order to maintain your credit history are things like mobile phone contracts, current account if you've been able to keep it, and staying on the electoral roll.

dollarman

Thanks for that.

But if i may, I'd like to understand a little more about this 'forbidden' act of getting credit while in an IVA even on something as controlled as a credit builder through 'My Cash Plus'.

Apart from the obvious of not getting further in debt.
Why would it be forbidden when its a controlled 'debt'?

moneysavingplumber

dollarman wrote: »

Thanks for that.

But if i may, I'd like to understand a little more about this 'forbidden' act of getting credit while in an IVA even on something as controlled as a credit builder through 'My Cash Plus'.

Apart from the obvious of not getting further in debt.
Why would it be forbidden when its a controlled 'debt'?

It's the law, as far as I know, that if you are insolvent you cannot attempt to obtain credit. How this is upheld or enforced I am not sure. In an IVA there are exceptions that can be permitted by your supervisor, but as I said before, this may be, for example, trade credit in order to continue trading and earning a living in order to continue paying into the agreement. Attempting to build a credit history for later on would not constitute a good enough reason. As I said, I could be wrong but that's how I've always understood it.

It will make little or no difference to your file until six years have elapsed from the start of the IVA anyway. Generally, only sub-prime credit will be available until the IVA and defaults are actually removed.