I settled my IVA but don't seem any better off?!

Snipes

Hi,

Can anyone give me some advice please? I settled my IVA back in may, 2 years into the agreement, but my eligibility for credit seems no better? I took out the iva when I was out of work, but have since been employed for over 18 months in a secure job and have paid back what I owed instead of dragging out the IVA for the full term now Im in a position to clear it.
It states on my credit report that I've paid what I owed and it's been settled, but still getting knockbacks on low limit credit cards that are supposed to help rebuild my score? Once the account was settled my credit score on Experian was 2 points under excellent. I applied for a card to help build my score to maximum, but my application was rejected and my score plummited to mid fair.
I don't understand why I got knocked back when my score was almost excellent and my debts are paid off? Am I right in thinking that even though it's paid and I owe nothing, I'm potentially facing another 3 years of knockbacks because the IVA sits on my file for the full term even though it's cleared?
Is there any way of fixing this, or should I not have bothered trying to do the right thing and made them wait for their money? :mad:

Thanks in advance.

[Deleted User]

Your score is irrelevant. You're the only one to see it.

Did you apply for a sub prime card?

DCFC79

Your score is irrelevant, whats important is your credit history.

Thrugelmir

You've got your self into monetary trouble, and now you want more credit to prove you are reformed. Think about it for a minute............................................Perhaps the better option is simply doing nothing for a while. Let time do the heavy lifting.

Snipes

I didn't get myself into monitary trouble, I lost my job and income support didn't cover my outgoings. What I borrowed I've now paid back.
Most website recommend using low limit cards so that you're making regular loan repayments to build your file.I'm not trying to live off of credit.
In the near future I'd like to buy a flat with my girlfriend, but with a low score and constant rejection for minimal credit, that seems an impossibility.

[Deleted User]

So did you apply for a sub prime card or not? It's very difficult to assist without knowing the facts.

Thrugelmir

Snipes wrote: »

In the near future I'd like to buy a flat with my girlfriend, but with a low score and constant rejection for minimal credit, that seems an impossibility.

Then you should be focusing on saving. There's various ways of improving your profile as far as lenders are concerned. Having savings will provide a safety net should you hit financial trouble again. Living pay day to pay day will always be fraught with risk.

Snipes

Who said anything about living payday to payday? That's a rather condescending assumption. I'm done with this thread.

fermi

Snipes wrote: »

I don't understand why I got knocked back when my score was almost excellent and my debts are paid off? Am I right in thinking that even though it's paid and I owe nothing, I'm potentially facing another 3 years of knockbacks because the IVA sits on my file for the full term even though it's cleared?

As has been said, the score from the CRAs means nothing. In fact it's a joke that you could at any point have 'excellent' 2 years after an IVA start on your file.

The IVA and defaulted accounts of your credit file, which is pretty much as bad as a bankruptcy, will have a large impact for the 6 years they remain. IVA paid off or not.

The impact will get a bit less over the 6 years, and many find that after 2 or 3 there is not so much trouble getting things such as those sub prime cards. So you probably just have to wait for a bit before another go.

In the end unless you urgently need the credit you can afford a little time, as still 4 years to go to build up a bit of positive history for your file for when the adverse IVA and prior default entries drop off. Obviously the longer the better, and it would be nice to start now, but can't always be the case.

Well done for dealing with your debts by the way.