Got my cert of completion, but when will my creditors file be updated?

pilliepop

Hi everyone,

I've recently completed an IVA early with a gift from a family member. I was three years into a 6 year arrangement. Debt Free Direct have now sent me my completion certificate - woohoo :T - but have said in the accompanying letter that once SIX years have passed from the date I took out the arrangement, my creditors will then update my credit report.

Eh? Surely as I've successfully completed the arrangement - albeit early - I've settled all claims they have and therefore my credit file should be updated NOW?

Does anyone have any experience of this? Can I write to each of them and request they update it?

Also does anyone know how will this affect my ability to get a mortgage in the not too distant future?

Many thanks for all your help,

mwarby

Your file will be updated in a few months. It will show the accounts have been (partially)settled and now have a zero balance. Your IVA will change to a completed status.

Until the 6 year point though all the adverse history will remain, they can see you missed payments, defaulted and had an IVA. This unfortunately means your ability to get credit is still pretty limited, as most lenders will view you as a high risk

mwarby

mortgage wise I think you'll need to wait until the 6 year point, as the most relaxed mortgage provider I know of (on high street anyway) - nationwide, needs the arrangement to have been completed for 3 years.

At the 6 year point your ability to shop around will be much better. I think perhaps the best approach is to spend the next 3 years saving the best deposit you can

sourcrates

Defaults stay on your credit file for 6 years regardless of if, how, or when, you repay the debts associated with the defaults.

That, unfortunately is how the system works in this country.

pilliepop

Thanks everyone for your replies - this is very helpful!

Good to know about the mortgage too, as this is something I had planned to do pretty much straight away, but obviously if I can't get a loan I'll just have to sit tight and save until I can.

Many thanks again :-)

mwarby

Once you have a deposit there not much harm in trying, hard searches only stay for a year, and lenders can see product type. A mortgage lender will be worried by many searches for loans or cards, but less so mortgages (as you'll only be getting one), but still don't go nuts