Loan Post IVA

Whitty1983

Hi All,

This is my first post, so please be kind!

I am looking to arrange a loan for £5000 through Barclays to purchase a new used car to replace our tired current car, I currently earn £21000 per year, I plan to use Barclays as I have banked with them for nearly 7 years.

On September 9th 2008 I entered into an IVA which is now completed and have the completion certificate. On September 9th 2014 I am expecting/hoping this should disappear from my credit file.

I have recently received statutory credit reports from Experian, Equifax & Call Credit and have a Noodle account, all reports show the same information with all creditors having default dates 09/09/08 along with the IVA. I will request all reports again mid September to ensure all defaults have been removed.

I currently have a credit card from Vanquis which I have had since Nov 2013, starting limit of £500 which was raised to £1000 in April, I also have a Barclaycard Initial which I received in March 2014 starting limit of £800 which has recently been raise to £1200, both cards are used for minor purchases and are paid off in full every month on time.

Does anyone have any experience with loans post IVA and is my search for a loan to early with everything I have just explained?

jonesMUFCforever

When did you exit the IVA - won't the debts be on your record for 6 years after this date?

fermi

jonesMUFCforever wrote: »

When did you exit the IVA - won't the debts be on your record for 6 years after this date?

The IVA drops off 6 years from it's start.

Any debts covered by the IVA must also be recorded as a default, with the date of that no later than the start of the IVA, so they should all disappear from credit reports 6 years from the IVA start as well.

PeacefulWaters

I don't have the experience you're asking for.

But I don't quite get the desire to borrow again so soon.

CHR15

I wouldn't even consider looking until your credit file is clear.

Anywhere which would accept your application now is going to fleece you on interest rates.

Whitty1983

Thank you all for your replies.

I am not going to consider looking until I am in possession of my statutory credit reports from Experian, Equifax & Call Credit mid September hoping that all defaults have been removed.

Does anyone know if the above credit agencies update files daily or weekly?

Vixstar

I think they're updated monthly.

Whitty1983

I believe Noodle is monthly, just read another thread and Experian update daily, removing defaults at midnight on the day of the 6th year anniversary.

C.W

fermi wrote: »

The IVA drops off 6 years from it's start.

Any debts covered by the IVA must also be recorded as a default, with the date of that no later than the start of the IVA, so they should all disappear from credit reports 6 years from the IVA start as well.

I'd convinced myself it was 6 years after the completion of the IVA so thought I'd spend most of my life in its shadow. Nice to know it's a more realistic February 2018 (started mine February 2012). I'll only be 33 years old :P

Vikipollard

I'd hold fire until next year. This is more about being sure you need the new car, rather than just want, if you get me.


It will also give you time to see if you can put away the amount of the payment for the loan each month into savings so you'll know if you can really afford it, not just on paper.


I had a six-year IVA from 2006-2012 as per my signature. By the end of it, I'd got used to saving a set amount each month. Started at £90 when a bill stopped and went up from there to £800 once my son finished Uni last year. This meant we could pay for the major home improvements and car repairs we unfortunately incurred at the beginning of this year without borrowing.


Sadly my 13-year old 207k miles car needed replacing at the end of this (May 2014) and after much hand wringing and soul searching - and a not inconsiderable amount of worrying about it - I took out a loan with my bank for £7.5k for a newer one over 2 years. I was staggered to get it at 5.4% (£330/month), but I knew I could cover the payments out of what I save (and still save £500 a month). Before anyone goes there, I know we could have bought cheaper...this was a want, not a need!


The reason for telling you this is to encourage you to wait and be sure you can afford the payments without crippling yourself. I check my bank account daily - including that the loan payment has gone and how much I still have to go - because I'm petrified of being out of control.


Best of Luck

Whitty1983

Thank you Vikkipollard for your advice!