Does IVA impact credit score of others at same address?

mercexe

If someone has an IVA will others at the same address be affected?

Will lenders know that someone at that address is on an IVA and therefore be less willing to lend to others at the same address (even if not financially linked)?

Thanks

UpToMyNeckInIt

Yes and yes, so I understand.

rizla_king

If not financially linked, then no.

mercexe

2 different answers! Anyone know definitively?

UpToMyNeckInIt

What is the relationship between the people at your address?

In my case, even though only I am in the IVA, and despite the fact that we have no joint accounts - apart from the Mortgage, my Wife's credit rating has been damaged. She also shows up on my 'Noddle' Credit Report as a 'financial connection'.

If you are talking about a totally unrelated family member however, then you should be OK. Saying that, it's amazing how tenuous a 'financial link' can be: Lodger/tenancy arrangement for example MAY count.

On top of that, banks etc. keep data over and above what the credit agencies do.

I read on another forum: Santander for example, keep records of IVA customers for 20 Years.

fermi

The joint mortgage there would be financial connection enough to link credit files and have a detrimental effect on cases where a potential creditor includes a check on associate information in their search submission.

If there are no financial links on the credit reports then the IVA of anyone else should not affect credit assessments based on CRA info, since the lender would not see any sign of the IVA on the results.

However, if the lender has (internal or otherwise) records by other means that flags up the IVA, the possible they may take it into account? More likely with a mortgage application where other search types are done and records checked?

In most cases though for standard credit, it would be just the CRA info that is checked, so the IVA should not prejudice other peoples application if there is no CRA link.

UpToMyNeckInIt

Thanks for the clarification.

As you have touched upon: Banks/other lenders have their own data sources, and who knows how they use that?

Whilst I know there is no such thing as 'blacklisting' addresses officially, it is possible that banks may decline a product at an address where they know someone is insolvent.

It follows that, even if your official credit rating is unaffected, I guess that you may fail to obtain financial products from some banks etc. regardless.

Would be interesting to see if there is anyone on this forum who can clarify this potential data useage with the various institutions.

fermi

UpToMyNeckInIt wrote: »

Whilst I know there is no such thing as 'blacklisting' addresses officially, it is possible that banks may decline a product at an address where they know someone is insolvent.

It follows that, even if your official credit rating is unaffected, I guess that you may fail to obtain financial products from some banks etc. regardless.

Should stress though that it's by a gigantic margin by far the exception rather than the rule. i.e people should bear in mind that it could happen, but for most it's not an issue. Certainly not something to get much worried about.

mercexe

Has anyone else got any experience with this?

I've been rejected for 3 credit products since my Mother got an IVA. I have no financial connections.

My credit record is flawless so I'm confused as to why this might be, unless they are seeing an IVA registered at the address and rejecting for that reason.

tinkledom

mercexe wrote: »

Has anyone else got any experience with this?

I've been rejected for 3 credit products since my Mother got an IVA. I have no financial connections.

My credit record is flawless so I'm confused as to why this might be, unless they are seeing an IVA registered at the address and rejecting for that reason.

It's the address and the relationship.


As they used to say - like mother like daughter, like father like son.


If my daughter came to live with us and had a bad credit file and had an IVA, I would fully expect it to affect all of us in the home - it's logical.

mercexe

tinkledom wrote: »

It's the address and the relationship.


As they used to say - like mother like daughter, like father like son.


If my daughter came to live with us and had a bad credit file and had an IVA, I would fully expect it to affect all of us in the home - it's logical.

Thanks for this unhelpful speculation. :wall:

If you've never shared a credit product with a person why should it be assumed your relationship with credit is the same?