Building credit after completed IVA

Foreveramoo

I completed my IVA last October and have recieved my certificate of completion now. Sometime in the future I would like to buy a house and get a mortgage. How can I build my credit rating back up so that I can get a mortgage in the future? 

fatbelly

Most IVAs last 5 years, credit records stay for 6. So from what you say, your report should clear this October.


You should check that any defaults still showing match or precede the IVA date. They will drop off at the same time

You need to check that your report shows you as being on the electoral roll

Apart from that, a bank account and a credit card (paid off in full each month) on file should show you as being creditworthy

born_again

Foreveramoo said:

I completed my IVA last October and have recieved my certificate of completion now. Sometime in the future I would like to buy a house and get a mortgage. How can I build my credit rating back up so that I can get a mortgage in the future? 

Forget about credit rating. It means nothing to a lender & they do not see it.

Concentrate on credit history. So no missed DD's etc. 

RAS

If you go to the main bankruptcy forum, sourcrates updated the credit clean-up stickie a couple of years ago.

Get that sorted, make sure you are on the electoral roll, a couple of DDs that are paid on time every month and a credit card which is paid off in full every month. You may have to go for a credit maker card in the first instance but over time aim for a main stream card.

And get saving, ISAs and LISA if you are under the age limit.

Brie

There's some great ideas here on what to do so I'll just mention the things you should NOT do.

Don't live in your overdraft.
Don't get a fancy phone on a contract - buy one outright and get a sim only contract.
Don't pay motor or home insurance on a monthly basis - buy it out right even if it means not clearing your credit card for one month.

All of these things - like a credit card too - are credit agreements and while you need to prove you are a responsible borrower you don't want to look like you are really dependent on living in your credit.  

Foreveramoo

fatbelly said:

Most IVAs last 5 years, credit records stay for 6. So from what you say, your report should clear this October.


You should check that any defaults still showing match or precede the IVA date. They will drop off at the same time

You need to check that your report shows you as being on the electoral roll

Apart from that, a bank account and a credit card (paid off in full each month) on file should show you as being creditworthy

So I applied for a bad credit, credit card so that I could pay for my shopping on it and pay it off immediately. It said I wasn't eligible, could that be because I need to wait until October? 

RAS

You need to wait until the IVA no longer shows on your credit record, at least and avoid doing hard searches for a while.

Did the application ask if you'd ever been insolvent, or just if you were insolvent?

fatbelly

Foreveramoo said: So I applied for a bad credit, credit card so that I could pay for my shopping on it and pay it off immediately. It said I wasn't eligible, could that be because I need to wait until October? 

Probably. You are not going to look very good with an IVA on your file.

Definitely give it a few months, check it's gone, then try again with a new company.

You also don't want a load of failed application searches on your file.

ManyWays

I am surprised you can't get a bad credit card now if all the debts in the IVA have been marked as @fatbelly says - default date on or before the IVA start date; all now marked as satisfied or partially satisfied with zero owing. Check all these now and dont make more applications until you are sure all the debts are showing correctly.

If you can save a set amount each month for a year, look at something called Loqbox; it is reported as a loan on your credit record so it helps your score when all the problems have dropped off.