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Once IVA is finished

Hi, so I am nearly 4 years into my IVA out of 5 years, I fine myself in the lucky position that I can now afford to pay my IVA off now. I have a Experian Credit Score of around 675 (Poor Status), I know the IVA will stay on record until 6 years (wasn't told that when i took the IVA out). My question is if I do pay it off early will my Credit Score rise slightly straight away? Albeit not lots because of it being on my record for 6 years. If my Score isn't going to go up at all straight away then I may as well do the full 5 years repayments and kept the money I have for other things. Cheers 

Comments

  • fatbelly
    fatbelly Posts: 23,071 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Don't worry about your score  - it means nothing.
    I don't understand what you mean by 'I may as well do the full 5 years repayments and kept the money I have for other things.'
    If you have had a windfall, I presume you declared this to your insolvency practitioner and this is why you know how much of it is required to pay off the IVA, including their fees.
    Is your lump sum protected in some way?
  • climo2k
    climo2k Posts: 2 Newbie
    First Post
    I know how much is left to pay as I have 12 months at £167 plus then fees, I've not had a windfall but I have the means to pay the balance off. I want to only pay it off early if it means my score will go up once it hits complete status, as this then means I can work on my Credit Score further for next 2 years before it removes from my Credit file. 
  • fatbelly
    fatbelly Posts: 23,071 Forumite
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    I understand - it's coming from a third party. It's Case 2 here
    https://debtcamel.co.uk/iva-settlement/
    Making an offer in full & final settlement might save you a few quid.

    Don't worry about your credit score though. It means nothing and the IVA will be on your file for 6 years no matter what.
  • victor2
    victor2 Posts: 8,148 Ambassador
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    edited 6 May 2020 at 7:09PM
    As above, your credit score is a meaningless number. Credit companies are not interested in it. What they do look at is your history. Your IVA will be there for another six years and will affect how companies looking to give you credit will see your ability to repay them. I suppose the 6 years will start sooner if you clear the IVA now.

    Edit:
    My mistake. The IVA stays on your credit report for 6 years from when it was approved, so the 6 years has already started, and paying it off early will not make it disappear any sooner, it will just be marked as "complete", which may get a better reception by some creditors.

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  • fatbelly
    fatbelly Posts: 23,071 Forumite
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    victor2 said:
    As above, your credit score is a meaningless number. Credit companies are not interested in it. What they do look at is your history. Your IVA will be there for another six years and will affect how companies looking to give you credit will see your ability to repay them. I suppose the 6 years will start sooner if you clear the IVA now.

    Edit:
    My mistake. The IVA stays on your credit report for 6 years from when it was approved, so the 6 years has already started, and paying it off early will not make it disappear any sooner, it will just be marked as "complete", which may get a better reception by some creditors.
    It will be marked as completed on the insolvency register, but I think that only stays there for 3 months before dropping off.

    I don't think the entry on the credit report changes.
  • Hi, I signed up for a 5 year IVA. Then when it got to 5 years they extended it to 6 years, now I have been told it will be extended for yet another year. Does this ever end.

  • mwarby
    mwarby Posts: 2,049 Forumite
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    losh123 said:
    Hi, I signed up for a 5 year IVA. Then when it got to 5 years they extended it to 6 years, now I have been told it will be extended for yet another year. Does this ever end.


    Perhaps start your own thread, we can then look to unravell why its being extended. IVAs are by nature individual arrangements so difficult to generalise about extensions, your agreement should detail when one is allowed and when its not
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