when to start rebuilding credit?

greenbrucelee

My final payment for my IVA is March next year. I see many people get a credit card to start rebuilding their credit rating. My current score on clear score is 231.

When do I start to rebuild?

UpToMyNeckInIt

You could start re-building it now.

If your IVA allows you £500 credit, you could - if you feel diciplined enough not to do anything silly, apply for a Vanquis or Aqua Credit card. Then spend and repay the balance IN FULL every Month.

Repaying in full and on time each is important: If accepted, the APR will be circa 40%, so you will not want to be paying interest.

But that way, once your credit rating 'recovers' (6 years from the start of your IVA), it will recover with a string of nice green 'ticks' against a well-managed credit card. This will make your credit file look more 'normal', and further boost your score/rating, as opposed to a recovered file with no history of well-managed credit.

Got a Vanquis card myself, whilst still in my IVA - no bother at all, and it makes things like car hire easier if you have a credit card as well.

Good luck.

greenbrucelee

problem is which is lame but I had a vanquis card when I started my IVA even though I had no issues with it I was told to give it up and make it part of the IVA.

I thought you were not allowed to do stuff like that until you had finished

foxy-stoat

greenbrucelee wrote: »

problem is which is lame but I had a vanquis card when I started my IVA even though I had no issues with it I was told to give it up and make it part of the IVA.

I thought you were not allowed to do stuff like that until you had finished

I had a capital one card all the way through my IVA, was at £0 balance at the start and about £1000 at the end. Paid them every month on time and bought food and fuel on it. I always thought at the back of my mind that it may cause a problem but it never did.


I would advise taking out any credit until you have completed your IVA though.


Only thing you should do is make sure all defaults are on or before the IVA started on your credit files so once you have paid the last payment and let them faff around with PPI claims, your IVA will drop off your file March 2018.


Pay no attention to your credit score