A question about IVA

MeestaDimples

Hello,

For how long would an IVA effect your credit rating? Someone told me that an IVA typically runs for 5 years, but it isn't until 6 years after that has finished that it drops off your credit file.

Also, is a DMP better for your long-term credit rating than an IVA? I just want to be able to get a mortgage by the time I'm 40 (I'm 31 now).

Many thanks in advance.

james32_uk

IVA falls off your file 6 years from the start of your IVA. A DMP falls off your record 6 years from your last payment.

Once they're off your file the only way your IVA or DMP could affect your application for credit is if you are asked if you 'have ever entered into an special agreement to repay your debts'.

Please check with any financial organisation before you take the above as read.

BAILIFFCHASER

If they drop off after 6 years the it is the same as if someone asks have you ever defaulted on a agreement or have you everbeen defaulted ? This is what banks ask in their questions if you apply for a job with one.