Building Credit after IVA

spriggit82

Hi all,

This is my first post so apologies for the waffling

I completed my IVA in Sept last year and finally got my completion certificate in January this year. I have had a run of bad luck the beginning of this year (car exploded (new engine), washing machine and oven blew up!) and am currently paying my other half for these (he put them on his credit card at the time) Due to this I am going to be rather short for the next month or two and I was wondering whether it would be worth applying for an overdraft with my bank (barclays) I only require a low limit (say £100) just to cover my outgoings for the next month or two and then pay it off. I have checked my credit report and all the defaults i had on there are now showing as satisfied from the date of the iva (sept 2005). I have never been overdrawn with Barclays if that helps.

I was wondering what my chances would be of being approved? dont want to go down the route of a credit card again but do not want to apply for anything and get rejected as it will be another black mark on my credit report.

any advice as to what would be the best thing to do would be much appreciated.

Zoe

judojub

Hi. Your IVA will remain on your credit file for 6 years from the date it was accepted. You may well struggle to get any kind of credit until that happens.
I am sure somebody will be along soon enough to advise you a bit more!

spriggit82

thank you If I could wait until Sept that would be so much easier but unfortunately need the help now. Forgot to put in my initial post that my experian credit score is currently 828 (which apparently is fair??)

ferrit44

I would say difficult to get the overdraft with Barclays whilst the IVA and defaults are still showing on your credit record.

They gave me a huge £10 overdraft when I upgraded my current account with them

spriggit82

thats what they have given me the other day! was going to pay them a visit on friday with my reports to see what they say. Im not sure that they knew I was in an iva. would they close my account now if they didnt know even though the iva is completed?

notmyrealusername

I don't know about overdrafts but I successfully applied for credit cards in the same sort of timeframes as your situation (6 months after completion of IVA). An overdraft is obviously much better than a credit card for your needs though. I use both my credit cards regularly but always pay off in full at each statement and have never paid a penny in interest.

Sept 06 - Started IVA.
Sept 09 - IVA concluded by way of F&F.
Feb 10 - Accepted for Vanquis £500 limit.
May 10 - Third statement, limit increased to £1000.
Sept 10 - Seventh statement, limit increased to £2000.
November 2010 - Accepted for Sygma credit card, £2000 limit.