How would your IP know

greenbrucelee

if you got credit on an IVA if you never failed with your payments and always paid everything you had to on the IVA?

I doubt they check your credit file as long as you pay then they are happy.

This is just an hypothetical question not something I am going to do as I have notice a few people say they have credit cards and stuff whilst still in an iva.

UpToMyNeckInIt

...It is a question that has been asked before, and with no definitive answer.

Firstly, check that your IVA allows you to obtain credit (usually £500 maximum).

I don't think your IP has unrestricted access to your credit file, but I stand to be corrected on that point if anyone knows any different.

Therefore theoretically, you could obtain credit and, providing you can manage the repayments, your IP will be none the wiser. Saying that, if you repay a credit card from your current account, this will show on your bank statement, and may raise questions at review time.

Personally, I have a 'Commercial Card' with HSBC linked to my business account with £1,000 limit, which is in my company name (my IP knows and has no issue with that). But I also have a Vanquis credit card with a £2,000 limit in my name.

I have kept the £2,000 limit on the Vanquis (but never used more than £500-ish), because that upgrades me to a 'Gold' Customer (remember when that used to matter?), which means I can call them on a free-phone rather than a premium number, and also adds a few more features to their online account management.

Importantly, I repay both cards (in full every Month), from my business account (I don't have to submit my company business account bank statements at review time), so as far as I am aware, my IVA company hasn't got a clue - a comment which sums up their service generally, I hasten to add!!!

Regardless, even if you took out credit, and your IP finds out, they will usually issue a notice of breach, giving you 30 days to repay the credit and close the account.

However, if your IVA allows a small amount of credit, it is worth having because, when your credit file recovers in 6 Years, it does so with a nice neat line of ticks or green blobs, demonstrating that you have been able to responsibly manage credit. It therefore looks more 'normal' if you see what I mean. As opposed to a file that is recovered, but with no credit history.

Max_Maxwell

Getting credit whilst in an IVA would be a challenge at best. Very few lenders would entertain a credit agreement with an insolvent.

More importantly the terms of your IVA stipulate you are not permitted to do so, save the points made by UTMNII above. Your creditors have agreed to accept reduced payments on your debt and are quite entitled to insist you do not entertain further credit. There is a duty on the debtor to abide by the terms of the contract, plus you run the risk of nullifying your arrangement and being right back to square one and in an even bigger pickle than you were ever in if your creditors find out.

This is not just a question of policy, but principle too.

sourcrates

You wont be able to obtain credit whilst your name is still on the insolvency register from mainstream lenders, you can get pay day loans (up to £500 normally) depends on the particular company, I have had pay day loans up to £1000 whilst in an IVA, but I also had the means to repay them on time, so had no issues, basically your IP is a very busy man, and its his/her staff that do all the donkey work, I very much doubt they ever look at an individuals credit file to see what they have been up to, its just too much work, when you think they service thousands of clients, I never had any issues with it.

biscuit1_2

This post kind of lends itself to a theory i have had for a while that most ip's are far to busy to actually check every single iva, even though you send in your pay slips bank statements (though i only had to send in my payslips). I doubt they actually get checked, it will all be down to to how you appear and manage yourself, if your honest transparent up front and dont hassel tham over the ppi thing and arnt found to be trying to pull the wool you will get away with murder. I am with GT and had no issues so far in fact at the end of last year they stopped taking my direct debits for 2 months i rang them to queiry it and was told not to worry. How many would have kept quiet and spent the money,honesty is the best policy..... initially anyway......