Debt Camel

Answers to questions about debts and credit ratings - in plain English!

Improving your credit score after an IVA

An IVA wrecks your credit record for six years – or until your IVA finishes if this is longer than six years.

After your IVA finishes, in theory you won’t need to do anything and all the problems will disappear from your record after the six year point…

But many people have to send some letters asking their old creditors to get things right. Here are the letters to send and advice on how to improve your credit rating after an IVA. The process here is the same as cleaning up your credit record after bankruptcy but the details and dates are different as IVAs take much longer to finish than bankruptcy.

Even if you have no intention of getting more debt, a good credit score makes it easier to rent a house or get a mobile contract. And it’s essential if you want to buy a house or re-mortgage at a good rate.

Bottle of cleaning fluid and spionges - how to clean up your credit record and imporve your credit score after an IVA has ended

How IVAs should show on your credit record

What should have happened in the first few months of your IVA

If you look at your credit records (see How to check your credit record for free – there is no need to pay for this!) a few months after your IVA has started you should see:

  • the IVA shows in the Public Record section of your credit record. It can take a few weeks for the entry to appear;
  • all debts in your IVA should be marked as defaulted;
  • the default date for every debt included in your IVA should be the date your IVA started or earlier;
  • there will be no change for any CCJs even though they are in your IVA;
  • there will be no change for any debts, such as your mortgage, which do not form part of your IVA.

When your IVA ends and you have received a Completion Certificate, the changes to your credit file depend on whether this is less than six years after the date your IVA started or more than 6 years.

If your IVA completes in less than 6 years

By “completed” I mean you have received your completion certificate – that is the important date, not when you made your last payment.

Your credit record will be updated to say your IVA has completed.

The IVA marker will stay – it only drops off your credit record six years after the start of your IVA. This applies even if you have repaid your IVA debts in full. This is very annoying as the IVA marker makes it virtually impossible to get a mortgage, but there is nothing you can do to change this.

All the debts in your IVA should have their balance owed set to zero. The ICO says the debts should be marked “to show that you no longer owe money on that account (perhaps by marking the entry as ‘partially satisfied’ or ‘partially settled’ or in some other way)” . How this is reported depends on what credit report you are looking at, but in practice it doesn’t matter providing the balance owed is zero.

If all the above has happened correctly, after six years everything vanishes and your credit rating will improve dramatically:

  • the IVA marker disappears from your credit record;
  • some of the IVA debts may already have disappeared (because their default date was before your IVA started) and the rest should go at the same time as the IVA marker (because their default date is the same as your IVA);
  • CCJs drop off six years from the judgment date, so they will already have gone by this six year point.

What happens if your IVA lasted more than 6 years

The IVA marker will disappear from your credit file immediately – well it may take a week or two!

All the debts in your IVA and any CCJs will already have disappeared. Debts drop off 6 years after the default date, and this should have been on or before the date of your IVA.

Correcting problems

It’s not difficult  – just be organised!

To make sure everything is right check your credit records with all the Credit Reference Agencies because some creditors only report to one of them.

With all the problems below, you need to get the creditor to correct the problem. Don’t waste your time trying to get the credit reference agencies – Experian, Equifax and Call Credit – to change anything because all they will do is send your complaint to the creditor.

All complaints here should be in writing – don’t try to resolve problems on the phone or you will be talking to someone who probably hasn’t a clue what an IVA is. So send the letter below recorded delivery to the Data Controller for the creditor (get the address from the ICO). Keep a copy of letters you send and the proof of postage.

This makes it sound as though these issues are hard – they aren’t! You send a simple letter to the right person and 99% of cases are easily sorted.

When and how to get a default date corrected

I suggest waiting at least 6 months after the start of your IVA before you do this. It can take a while for your IVA firm to inform all your creditors about your IVA and there is no hurry because your credit record is going to be dreadful for years anyway. But it’s best to deal with this well before your IVA ends – you don’t want to add delays on afterwards.

Here is the letter to send to the Data Controller for the creditor:

re: [account/reference xxxxxxxxxxxxxxx]

I started an Individual Voluntary Arrangement (IVA) on dd/mm/yyyy. You can confirm this by checking the Insolvency Register at https://www.insolvencydirect.bis.gov.uk/eiir/.

I am writing to ask you to correct my credit file for [details of your debt with the creditor, including the account number or reference number]. This debt is included in my IVA.

At the moment [there is no default date shown / the default date is shown as dd/mm/yyyy]. This is incorrect and a breach of the Information Commissioner’s Office guidelines and the Data Protection Act 1998. There should be a default date not later than the start date of my IVA.

Please correct this entry within 28 days or supply me with a written reason why you will not do so.

If the creditor replies saying they don’t know anything about your IVA, tell your IVA firm.

If the creditor knows about your IVA but refuses to add or correct the default date, complain to the Financial Ombudsman.  Attach copies of your letter to the creditor, proof of posting and any reply from the creditor.

This works! Here is an example of a Financial Ombudsman decision that Myjar, a payday lender, should correct an AP marker to be a default at the start of the IVA.

The Ombudsman decided that:

MYJAR hasn’t explained why it has departed from [the ICO’s guidance] and I can see no good reason for it to have done so.

One rare situation… mortgage shortfalls (if you sold a house and it wasn’t enough to repay the mortgage) are unusual in an IVA but if you have one, read How to repair your credit record after bankruptcy which covers these debts.

If a creditor doesn’t mark balance as zero when your IVA is completed

If the default date for the debt is on or before the date your IVA started, as it should be, the debt is going to disappear from your credit record six years after that date. If this is just a few months, your file will clear itself then so it’s probably not worth bothering with this.

But if you want to get this corrected, send the following letter to the data controller for the creditor:

re: [account/reference xxxxxxxxxxxxxxx]

I completed my IVA on dd/mm/yyyy. I attach a copy of my Completion Certificate.

I am writing to ask you to correct my credit file for the above debt which was included in my IVA.  The Information Commissioner’s Office guidelines state that my credit file should show that I no longer owe money on that account, perhaps by marking the entry as ‘partially satisfied’ or ‘partially settled’ or in some other way.

Please correct this entry within 28 days or supply me with a written reason why you will not do so.

Again, complain to the Financial Ombudsman as above if the entry is not corrected.

NB The creditor doesn’t have to mark the debt as fully settled/satisfied so there is no point in complaining if the debt has been marked as partially settled/satisfied.

CCJs are not amended

The court only has to mark a CCJ as satisfied if you have paid it in full, which you haven’t. There is no ‘partially settled’ status for a CCJ. So CCJs will remain on your credit record with a balance showing and you can’t get this changed.

Is it worth doing this?

It is definitely worth correcting the dates of default unless they are only a few weeks late.

If default date should are late or missing, they delay the time until your credit file is clean as these debts will remain for six years after the default date. If you want to remortgage once your IVA has finished, it is essential that your credit record improves as fast as possible.

Getting the balances set to zero after you get your Completion Certificate is less important.  Even if you get this amended, most applications for credit are likely to be refused whilst the IVA remains on your credit file. If you are close to the six-year drop-off, then you could decide to wait and let that clean everything up.

However, if the balances are all zero, although this doesn’t improve your credit score at all, it may be enough for you to be approved for a ‘bad credit’ card, see below.

A zero balance also prevents the debt being ‘sold on’ to another Debt Collector, which is annoying as you have to correspond with yet another person and send them details of your IVA.

Getting positive markers on your credit file

You should aim to start acquiring new, positive credit marks after your IVA has finished. If you don’t, when your credit record becomes clean, it is also very empty with nothing good showing.

First deal with the “clean up” process outlined above for your old debts. And make sure that you are on the electoral roll, your address and any other details are all correct with the credit reference agencies.

Then there are two options.

1) get a bad credit card

Then apply for a bad credit card – well-known brands are Vanquis, Aqua and Luma credit card.  Vanquis is owned by Provident, Luma is owned by Capital One – avoid one you had a debt in your IVA to.  If you are refused, double-check your credit file really is clean with all three credit reference agencies, wait a few months then apply to another card.

These cards are dangerous! Read Bad credit cards and how to use them wisely before you apply for one. Your credit rating will not improve faster if you leave a balance on this card. Your credit score is maximised by using the card every month for something small (a tank of petrol say) and repaying the card in full every month.

2) Save with LOQBOX

This is a new option, introduced in mid-2017. It lets you save money every month for a year and reports this to the credit reference agencies as a loan you are repaying, so your credit score improves. When all your IVA debts go, there is then this simple loan which you have repaid on time so your credit score is good! See how LOQBOX works for more details.

This all takes time

If you were expecting the end of your IVA to make an immediate improvement to your credit score, it usually doesn’t, unless it is after the six year point. There isn’t a way to speed this up. Firms selling a ‘repair your credit’ service either don’t work at all, or they will be no better than what you can do yourself using the letters here.

It doesn’t make any difference if you settled your IVA early

If you settle your IVA early, your credit record doesn’t automatically improve, as the IVA and the defaulted debts in it will still stay for 6 years, see Settling your IVA early and its effect of your credit score.

More Debt Camel articles:
What happens after your last IVA payment?

What happens after your last IVA payment?

2 apps that make it painless to save!

2 apps that make it painless to save!

Should you take a loan to end your IVA early?

Should you take a loan to end your IVA early?

Comments

  1. Hi, my husband entered into an IVA on the 29th June 2009. We were in a fortunate position to completely clear it by 2012. We have already taken the steps such as getting a vanquis credit card and we have always had mobile phone contracts and never missed a payment on our mortgage. How long will it take before our credit file is completely clear and showing a positive mark.

    Reply

    • Hi Belinda, if all your debts have a default date on or before your IVA start date, i sounds as though it should be a few weeks! The IVA marker should be gone after 6 years.

      Reply

      • As in previous post our IVA of 2009 was discharged in 2012. However we went to speak to our bank regarding a small loan for home improvements and discovered that Equifax had a Notice of Correction stating we had been in an IVA which was now discharged. This was enough for our loan to be turned down! Surely this is wrong when it is over six years since the IVA?

        Reply

  2. Our iva was finished three years ago but is still on record how do we get it removed we have the certificate to say it is finished?

    Reply

    • Hi Cath, this is unusual. You need to talk to you IVA firm about them informing the Insolvency Service so your name comes off the IS Register. This will then correct your credit file.

      Reply

  3. Hi, I entered into an IVA in Sept 2013. I receieved a lump sum the following January and paid off the Iva . It wasnt all of the monies owing, but my supervisor put this amount forward to creditors who agreed they would accept this as full and final settlement. However, this happened in the January and I have receieved no letters or paperwork to say this has been completed. What should I do? I understand that this IVA will still show for a further six years, so until 2019, but my credit report still lists these as active? Please Help? I had no idea about this letter of completion that people have been discussing, so should I have had received this?

    Reply

    • Hi Tammy, yes you should get a completion certificate – and you should have had it a long while ago! I suggest you check the Insolvency Register https://www.insolvencydirect.bis.gov.uk/eiir/. If your name is still there, your IVA firm hasn’t yet properly closed your IVA down – this has to be done before your credit records will be updated. If your name isn’t there, then your IVA has been closed – call your IVA firm and ask for your completion certificate.

      Reply

      • thankyou, I wasn’t even aware you could check the register like this for free! I have checked and my name is still listed, which I don’t understand as they said me paying this off would finalise evrything. I have heard absolutely nothing from them since this time either, I will contact them

        Reply

  4. Hi can you help me please? We entered into an IVA over 6 years ago, we received the certificate of satisfaction.
    Also manages Vanquis and Aqua credit cards, we have spent time clearing our credit file report up with Experian, Equifax etc our score has gone up and there are no unsatisfied things on there at all. We want to start looking for a mortgage, is this possible? Do we approach a broker??

    Reply

    • Hi Linzi, well done on getting through your IVA! If it has now dropped off your credit file and all the debts in it have disappeared as well (which they should have done if their default dates were correct) then you should be OK to start looking for a mortgage. Assuming of course that you have a deposit saved up! Yes I do suggest going through a broker. Some high street banks won’t consider anyone who has been bankrupt or in an IVA, so you could waste a lot of time make applications that are refused. A broker should be able to suggest who to apply to.

      Reply

  5. Hi,
    I arranged an IVA in October 2008 for my private debts. However my business collapsed in 2009 and we had to file for Bankruptcy in August 2009. This was discharged in 2010. The Official Receiver said that the debts within the IVA would be combined with all of my business debts so we listed everything in the Bankruptcy Statement of affairs. However, the IVA is still showing as active on our credit score and we are also now be chased for one of the debts contained listed within the Bankruptcy for a secure personal loan on £23,000 which we tried to use as a consolidation loan before our original IVA.
    Is this legal and are we still liable after Bankruptcy, for this debt? I entered into a three year voluntary repayment arrangement which was conducted by our Trustee. I completed this. We are at our wits end and this is now making us severely depressed and stressed out as we thought that this nightmare was over. However it seems to be starting all over again!

    Any help or advice would be very much appreciated.

    Reply

    • Hi Nick, this sounds like 2 separate problems.

      Can you check the Insolvency Register at https://www.insolvencydirect.bis.gov.uk/eiir/ and see if your IVA is still showing as open. It sound as though it is – in this case you need to talk to your IVA firm, give them your bankruptcy details and ask them to close it. If it isn’t, you need to talk to the credit reference agency and ask why your IVA is still showing.

      Re the secured loan, put in a formal written complaint to the firm (email will do with COMPLAINT in the title) saying this loan was included in your bankruptcy, giving your bankruptcy details.

      Reply

      • Thank you very much for your help and such a prompt response. Very impressive.

        Will take your advice.

        Best regards

        Reply

  6. My 6 year mark is the 09/11/2016, will the notice of an iva ccj and defaults all around this date automatically drop off or will I have to ask for this to be updated with creditors

    Reply

  7. Hi Sara, can I ask a question please? I had an IVA (full/final/one-off) in December 2010. The accounts went into default this month and they then weren’t partially settled by the insolvency company until December 2011 (even though i paid them in December 2010). So on my credit file, I have default date: December 2010, Satisfied date: December 2011. Under ‘Court Information’ on Equifax, I have: Court date: 29/12/2010 Date Satisfied: 29/12/2011. Would the 6 year timer start from the earlier or later date?
    Many thanks for your advice! Bill.

    Reply

    • The IVA insolvency marker will disappear 6 years after the start date of the IVA. Any debts with a default date will disappear 6 years after the default date. So it sounds as though your file will be clear in Dec this year :)

      Reply

  8. My IVA was dated Feb 2011 but I have an account that was passed on that shows Aug 2011. It’s only showing on Experian though. My IVA was settled early in July 15. Should all my defaults dissappear after Feb 2017? If I ask them to change that date of the August one then that should go as well ?

    Reply

  9. I have just been informed by the insolvency service that it’s gotta stop on for a further 3 month showing completed surely this is derogatory to me I’ve completed and want to rebuild my life. All creditors have been supplied copies of final report along with all credit agencies.

    This can’t be right and is there a way to get it off sooner.

    Reply

    • If you are talking about the Insolvency Register then yes, a completed IVA stays for 3 months, those are the rules.

      Reply

  10. I’m coming to the end of a seven year Debt Payment Plan through the Debt Arrangement Scheme in Scotland, in fact I made my final payment yesterday!

    I recently did a credit check to make sure all the debts were gone (as the start of the DPP was over six years ago), but noticed I had a few accounts with incorrect default dates (some were only showing as defaulting in the last year!), so I raised a dispute with the credit reference agency (Call Credit) for each of these accounts, saying what the correct default date should be. The credit reference agency has now written to me saying they contacted the creditors on my behalf, but had no response, so the accounts have been suppressed from my file. So, because of the suppression, all looks well on my Call Credit File., and there is no sign of those accounts at all.

    Unfortunately though, on my Equifax file it says: “Negative – You have had at least one Voluntary Arrangement. You have had at least one account in Default or Repossession”, and there are the three accounts (the same as the disputed ones with Call Credit), showing in closed accounts, but with balances still outstanding and regular payments being made.

    Does the Voluntary Arrangement refer to my DPP/DAS? If so, does the same rule apply as for IVAs and should this not show after six years? Or does this refer to a specific account? The three accounts it’s referring to as in default only show in closed accounts, but how can I get them to stop showing at all, as they are the ones that are well over six years old, and have already been disputed on my behalf with no success (and are clearly still showing as in default, as they are being noted as negatives).

    Is my next step to write to the creditors themselves and ask them to correct the default date, so that these accounts don’t show on my file? If so, can I just adapt the letter template for the IVA above?

    After paying this DPP without fault for seven years, I was really hoping this would be the end of it all. I am desperate to be able to re-mortgage as my ex-partner, who have haven’t seen or spoken to in eight years is still named on my mortgage, and I’ve been told I can’t get his name off (and therefore the financial connection between us) without applying for a new mortgage :(

    Reply

    • I know little about debt arrangements in Scotland. However as far as I know, a DAS is better compared to a DMP than to an IVA. It sounds to me as though the default dates on these debts are just wrong, so you should ask the creditors (not the credit reference agencies) to put them right. See https://debtcamel.co.uk/debt-default-date/ for how to do this. If you need any more help, can I suggest you talk to the debt adviser who helped to set up your DAS?

      Reply

  11. Thanks, I’ll write to the creditors and see how I get on. I did mention it to my debt advisor, who just said it wasn’t right and to file a Notice of Correction with the credit reference agency, which is why I tried that first!

    Reply

  12. I completed my 5 year old IVA this summer and got my confirmation letter just before the end of 2016

    This week, I went to my bank and asked them whether I was now able to consider if I should change my account from he basic one that was permitted when I had the IVA.

    The customer service asked an advisor, then came back and said the 6 years of being restricted started from the end of the IVA – meaning when it was settled.

    i really didn’t expect this, and don’t believe it, but what is the right advice, and what can someone who gets this back at them do?

    Reply

    • It is up to each bank to decide whether to give you a full current account. Most banks will refuse you whilst the IVA marker appears on your file. I suggest you concentrate on cleaning up your credit record as the article above explains. Then when the IVA marker disappears from your credit record, you could consider applying to a different bank.

      Alternatively, pick one of the new basic bank accounts and switch now to that! They are very good, see https://debtcamel.co.uk/new-basic-bank-account/

      Reply

  13. we completed our IVA 18 months ago early and our 6 year period is up in July this year but we are desperate to move but been advised we can’t until this drops of our file as we will struggle to get a mortgage. is there anyway we can get this off now and out of interest how much will our credit score improve once it drops off ? to be clear we have gone down the Vanquis route and all good and had phone contracts for years with no missed payments we have no other debt

    Reply

    • No there is no way to get it off your account early. Your score should improve considerably once it goes – if all the debts in your IVA are marked with defaults on or before your IVA date, they should all be gone too at that point and your score will probably be up to good.

      Reply

  14. Hi Sara,

    What happens if you are able to pay off your IVA early because you inherited some money say year 3?
    Would you have to pay the IVA amount (monthly payments x how many months payments left) or would the money go to the total amount owed (as in before the IVA)?

    Reply

    • A windfall such as an inheritance or a PPI refund gets paid into your IVA. It does does NOT reduce the amount you still have to pay.

      Your IVA will end early if the windfall means you repay the full amount of your debts PLUS the IVA fees (several thousand pounds) PLUS in some cases (it depends on the details of your t&cs) statutory interest at 8% on your debts.

      Reply

  15. Hi we made final payment of a 6 year Iva in Sept 2016. We still have not got certificate of completion ( now end Feb 17). After reading your forum I checked the insolvency register and our names are still listed. Can you advise what to do next please

    Reply

  16. I entered an a 5 year IVA on 12/06/2012 and the final payment is due this June, How soon after can I get to work trying to repair my credit, and when will it be removed from my credit file and off the IVA list.

    I hate the idea of getting further credit to repair it, someone suggested pre-paid cards do the really work or not. We are hoping that in 4-5 years we will be in the position to enter the right to buy scheme and get a mortgage with my partner to purchase our home. So its important that we do repair it.

    What kind of credit score should I be looking at aiming for.

    Reply

    • You can do the first stage in the above article (Creditor doesn’t use the correct default date) now – with any luck they will all be fine and you won’t need to get anything corrected.
      You can do the second stage after you get your completion certificate – but it’s best to wait a couple of months to allow most creditors to correct everything themselves.

      Your IVA will be deleted from your credit records on 12/06/2018. It will be gone from the Insolvency Register 3 months after you get your completion certificate.

      If you want to get a mortgage, you really do need to be using some real credit. The best thing is to get a bad credit card such as Vanquis, use it to buy something small and regular each month (a tank of petrol?) and they repay the card in full automatically by direct debit. This way you aren’t really borrowing at all and you aren’t paying their horrible rate of interest.

      Reply

  17. Hi I am just about to enter into a Iva for a period of 5 years? Is this a good way to get out of debt and build up my credit.. some people are saying to me I will never get credit again because I’m entering into a IVA

    Reply

    • An IVA may be a good way to get out of debt, that depends on whether you have any better options. If you have a house with equity to protect, an IVA could be a good option for you. If you don’t, then bankruptcy is almost always better. IVAs can fail, bankruptcy can’t. And you will pay less (or nothing) in bankruptcy. See https://debtcamel.co.uk/hard-choices/iva-vs-bankrutcy/

      An IVA is an APPALLING option if you want to build up your credit. The effect of an IVA on your credit record is exactly the same as bankruptcy, except it can last longer! Bankruptcy always disappears from your credit record completely after 6 years. Some IVAs disappear after 6 years, but a lot – even the “5 year ones” are still going after 7 or 8 years :(

      The article above, how to clean up your credit record after an IVA is identical to the process of clean up after bankruptcy, but because bankruptcy is over much quicker (1 year for most people, 3 years for the few people who have to make monthly payments) you can start the clean up process earlier. See https://debtcamel.co.uk/bankruptcy-iva-dro-credit-rating/ for details.

      Reply

  18. Hello entered into an IVA but due to many reasons it failed after two years without any money paid in going to the creditors, my question is from what date would any debts within the IVA become statue barred, would it be from their original default notice or the start of the IVA or from when it failed

    Reply

  19. Hi there my husband and I started IVA in May 2011, we extended 2 months and a further 12 months in lieu of equity. So our final payment was 1/7/17. What happens now or should happen. How can we repair credit? I have had an aqua card for 12 months and have cleared off every month. Help?

    Reply

    • It’s been more than 6 years since you started your IVA, so as soon as it completes properly (see https://debtcamel.co.uk/end-of-iva/ for more about the process of completion) the IVA should go from your credit record. If all the debts in your IVA were marked as defaulted on or before the IVA started – as they should have been – they will already have dropped off your credit record. If any are remaining, you need to get the default dates corrected, as the article above describes.)

      With no IVA and none of the debts in it showing, and your well managed aqua card, your credit record should soon be looking very good!

      Reply

  20. Hi. I am 47 payments into my 60 month IVA at £100 per month. I do not own my home but owe and additional £1700 through an increase in income. The IP has said this will likely extend my IVA another 12 months. I want to know whether I can offer a full and final payment (paid by third party) of £1500 plus 2 further months payments to close the IVA? I’m about to start uni and won’t be earning anymore. The IP says the IVA could still be affordable, however HMRC (for tax credit overpayment) and Barclays are my only creditors in the IVA. I’m concerned that if I apply for tax credits while I’m in my IVA they’ll demand the full sum owed and fail my IVA. Please help! Will they accept a full and final offer?

    Reply

    • If you owe 1700 because of previous overtime, pay rises etc than your IVA firm will probably be very happy to get most of this as a lump sum from a friend / relative.

      But applying for tax credits will NOT cause HMRC to fail your IVA.

      Reply

      • I still have another year left before the 1700 is added. The IP says instead of demanding this as a lump sum at the end they would extend the IVA for a year, so in theory I have 2 years at 100 per month owing £2400. Would an offer of 1700 now be accepted do you think? Or can they force me to claim tax credits to pay for another 2 years?

        Reply

        • I see. It’s possible they will take 1700 now instead of 2400 over 2 years but not likely. Worth a try?

          I’m not sure why you say “force you to claim tax credits” – if you are eligible you should be claiming them regardless of the IVA.

          Reply

          • Well I wasn’t planning on making a claim given that I’m in an iva due to overpayment and I’m scared of it happening again and landing me in further debt.

          • That is understandable, but if you are entitled to tax credits the reality is that you are NOT well off and will find it difficult to manage without.

            If you think you can manage without, claim the tax credits but put them in a savings account, new account for each tax years. If they say there was an overpayment last year, you have the money sitting there to refund. By the time it gets to tax year 2020/21, it’s safe to spend what you were given in tax year 2018/19.

  21. Definitely not well off. I wish! The reason the IP asked about tax credits is because they were looking at closing on paid to date due to me starting a degree and losing my income. I don’t currently qualify for tax credits but according to the IP I will once I start my degree, so the IP says that claiming would make the IVA affordable again. My dad has very kindly offered this money to close it so that I’m not still struggling and in debt while I’m a student since a nursing degree is stressful enough. It’s just a question now of whether it’s a high enough offer under the circumstances. My dad simply can’t afford any more, so if it’s rejected I’ll have no choice but to claim tax credits again in order to afford the monthly payments. My thinking is that if they reject the offer now they may accept it in 6 months time. Or I continue to make the payments to the end of the 60 months then make another offer instead of extending it for the extra year, provided my dad is able to of course.

    Reply

  22. Hi.
    I started an IVA in may 2012 and completed it with an early settlement in October 2014. All my creditors have put a default notice on my credit file from the start day of my IVA and every month there after until my settlement date in 2014. Where I thought my credit file would be clean 6 years after my start date ie may 2018 will the default notices stay on until October 2020? If do is this right.

    Reply

    • No, a debt will drop off 6 years after the first default date – so come May 2018 your record should be clean.

      Reply

  23. Thank you Sara.
    So even if I have 30 months showing as a default account they will all drop of as from the date of the first default month.

    Reply

  24. Dear Sara

    My IVA started in June 2014 with full and final settlement in September 2017. If now the IIR says “Completed On 26 September 2017” does this mean that my IVA’s record will disappear from the Register after 3 months which is 26 December 2017?

    I’m considering applying for a credit card which is – as they say – “suitable for rebuilding credit profile”. Is it really possible to be answered ‘yes’ applying before full six years from IVA start date? and if so – is it better to apply for it now or after 26 December (3 months period from the IVA completion date)? What is the best way of using such a credit card – borrow and repay in full before 30 days?

    Is it worth to pay £15 each month to track my credit score points yet now or better to save £180 as nothing significant can happen within next year anyway?

    You’re doing great job. Thank you very much!

    Reply

    • Being off the Insolvency Register isn’t the important bit. You should not apply for a credit builder card until all the debts in your IVA are marked as settled with zero owing. For most people that takes several months.

      There is no need to spend £15 a month on credit record monitoring. See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to check the records for free.

      This may feel frustrating as yiu want to move on, but you need to be realistic: your credit score is never going to get to Fair until the IVA disappears in 2020. The main aim of credit building now is that it gives you positive markers, so when all the defeats and the IVA go in 2020 your credit record isn’t empty but has a couple of years of good history showing. It is going to make no practical difference if it takes several more months to get your debts all marked as settled.

      Reply

      • > […] until all the debts in your IVA are marked as settled with zero owing.

        How can I know this happenes? I’ve sent copies of my final report to all my creditors (and to all 3 CRAs) couple days ago. One of them already sent me a letter sayin ‘partially satisfied and balance zero’ but can I count all of them would to the same quickly? Should I ask them to do this after some time?

        Reply

        • I suggest you wait a couple of months and then check your credit records. Then if any creditors haven’t update your records, you can write to them as the article above suggests.

          Reply

        • Dear Sara

          Could you please give me any advice in the following. Couple months ago (when I was still in IVA) an insurance company refused to insure my vehicle with monthly payments. I’m again planning to buy a car now and just wondering if I can ask insurer for a monthly payments (would a refusal affect my credit score?) or it is simply better to choose one off annual payment. Also: is it possible that they would refuse one off payment anyway? Thank you very much for your help!

          Reply

    • I don’t know what you are looking at. Have you had an IVA? Has it finished? When were the CCJs, before or after the IVA?

      Reply

  26. Dear Sara

    1. I’ve just been given Aqua credit card with a credit limit of £300 (my IVA was early completed in September this year). I’m thinking about car finance (ca. £3900 less £1000 deposit). If I’d be rejected will this lower my credit score? Do I have a chance not to be rejected at this stage? At the moment I have 671 experian points.

    2. You help many people for free on your website but often it is a huge help (at least for me). Is it possible to make a small donation as a ‘thank you’ for your time and effort? I can’t find this feature on this website.

    kind regards
    Lee

    Reply

    • How early was this completion? Have all the debts in it been marked as zero balance owing?

      (A small donation to your local Citizens Advice would be great!)

      Reply

      • IVA commenced in June 2014, full and final settlement in September 2017 so IVA was older than three years.

        > Have all the debts in it been marked as zero balance owing?
        Am I able to check this out if I have CreditClub account?

        Reply

        • And the report says:

          “Credit Balance:
          5 Accounts
          Total Balance: £0.00

          Credit Accounts:
          17 Accounts
          0 opened within 3 months
          0 opened within 6 months
          0 opened within 12 months
          5 older than 1 year
          6 closed accounts”

          Reply

  27. Hi

    I was discharged from my I.V.A as I lost a job back in June 2016 , my I.V.A started in 2012 no creditors I owe money is showing up on my file .

    I was wondering if this I.V.A will ever leave my file without the completion certificate from the courts you receive when it’s payed off

    If so would it be 6 years from 2012 or 6 years from the discharge date in June 2016 as I have read in previous posts it’s 6 year from when I.V.A started . Thanks in advance for any feedback

    Reply

  28. Hi,

    I was wondering if a Debt Arrangement Scheme in Scotland is the same as an IVA? I paid off my DAS in August last year and have recently checked my credit file with Equifax and there are no defaults on any of the accounts only late payments. After reading the above article I don’t know whether I am allowed to get defaults added so they will drop off my file as the 6 years would have been up last month. Thanks in advance, Allyson

    Reply

  29. Hi,
    I have settled my Iva early, this is not due to come off my credit report till Dec19, I have tried to set up a savings accout with my own bank (co op) but have been declined?? How do I go about saving money for emergencies? Are there any banks that are likely to accept me?

    Reply

  30. Hello, myself and my husband are both in an IVA with payplan. My last payment is due in Nov 18 and my husband’s in Feb 19. We’ve both have problems all the way through, but now we’re so close to the end I’m terrified that they’ll somehow sting us at the end. If it’s a five year plan, can they add any more onto the end? Is there a chance they can say we’re not finished? I don’t know where to go to to look. Thank you in advance.

    Reply

  31. Hi , we made an early settlement to the Iva company . They said it’ll take 3/6 months to complete .how long is it to get my Completion certificate . I want to sell my house. How long should I wait to do this ?

    Reply

  32. Yes they all accepted and we have paid the Iva back in March . We’re just waiting on the certificate now.

    Reply

    • OK then ask your IVA firm if you can sell the house now. You need it in writing from them that no money from the house sale will need to be paid into the IVA.

      You do know that you won’t be able to get a new mortgage elsewhere for the rest of the 6 years the IVA remains on your records?

      Reply

  33. I did have an IVA and I managed to arrange for an early settlement and cleared it last October.

    My credit score is very poor at the moment however my partner’s is very good. I wonder if we could get a mortgage on a joint name or would the mortgage application fail due to my situation.

    Reply

  34. Hi I am on iva since november 2017. Is it possible for me to change and be on bankruptcy?
    If so, is there any diisavantages or consequences?
    Thanks for your help.

    Reply

    • Could you say why you want to change and some information about your IVA – what are you paying a month? Are you struggling? Also are you renting or buying? Do you own a car, if yes, how much is it worth?

      Reply

  35. Hi, i entered into a IVA in 2015 with only about £7000, worth of unsecired debt. Since, most of my debtors went into liquidation and the majority of my debt was written off. Thr amount i woukd have paid into my IVA was significantly more than my remaining dept, so i was advised to fail my IVA. How long does ot take for a failed IVA to drop from my credit report?

    Reply

    • Who was your IVA firm? I am surprised at the advice to fail your IVA, why not just complete the IVA when all your debts had been repaid?

      Reply

  36. Hi
    I have an IVA completion cert dated 2015, it went the full term having been taken out in 2009, but as seems common took a while to get the cert through. I have seen an IFA who is saying it will remain on my file for another 3 years, so 12 years from when I entered into the arrangement. There seems some mixed info on the 6 year thing but 12 years seems excessive. Apparently there are lenders who still won’t consider even though I have a glowing credit score that I’ve worked hard to get in the last three years and I entered the arrangement 9 years ago already…. any advice gratefully received

    Reply

    • Is your IVA still showing on your credit record? It shouldn’t be! That IFA is talking nonsense/

      If it is still showing, check to see if you are still showing as having an active IVA on here https://www.insolvencydirect.bis.gov.uk/eiir/. If you are, there is your problem, tell your IVA firm to update the Insolvency Register and that will feed through and remove the IVA from your credit records.

      If your IVA is not showing, your problem is that you are applying for new credit to people you owed money to in your IVA. They can still see this from their internal records. Stop doing this and only apply to new creditors.

      Reply

  37. Thanks for this. I have checked and no (phew) I am not on the Insolvency register.
    Is there any way of knowing which lenders are linked easily so they can be avoided?
    Thanks again

    Reply

  38. I’m hoping someone here can advise… neither Step Change nor the ICO have so far been able to help.

    I took out an IVA in 2010, and completed it in 2016. My credit file is now clear except for one debt for £10 with T Mobile. T Mobile did agree to participate in the IVA agreement. The original T Mobile default predates the IVA.

    T Mobile argue that because the debt wasn’t repaid until IVA completion in 2016, that they did not close the account until 2016, and therefore will not stop reporting the default to the credit agencies until 2022. I also cannot get any account with TMobile/EE etc…

    I spoke to Step Change who confirmed the default should no longer show on my credit file after 2016, but they were unable to point me to any definitive information I could share with the ICO.

    The ICO investigated and decided that as EE said the debt had not been settled until 2016, that they had acted lawfully, and in accordance with their own policy to keep the default on my credit file for a further 6 years.

    Does anyone have any advice on how to sort this out? I have asked the ICO to reexamine the case, but if anyone can point me to the right bit of the insolvency act so I can prove the default should be removed after 6 years, that would be v v helpful…

    Reply

      • Thanks so much for that… EE (TMobile) have come back to say that because the debt was not settled until 2016 (when the IVA completed), that they will keep my debt on their own internal files for a further 6 years. Can they do that if they have agreed to delete the information from my credit file?

        Reply

        • yes that is fine. In fact they can keep it for 20+ years if they want – there is no limit on a firm’s internal records.

          Reply

  39. And (sorry – last question I promise!!) so if I am reading the guidance correctly… they should have marked the account as defaulted prior to the start of the IVA, and then the account closed, at the start date of the IVA? Is that right?

    Reply

    • No it should have been marked as defaulted at the start of the IVA (or before) and closed at the end of the IVA

      Reply

  40. Hi guys, can you give me some advise, i entered a DMP in july 2010 i then transferred to a IVA in Sept 2012, i had a debt with IKANO which was paid off in july 2012 through the DMP, ( it did not go into the IVA) i have checked my credit file and this debt is still showing, it stated that from july 2010 to Sept 2012 i had an arrangement to pay (AP) the credit file then stated that the account in up to date from Oct 2012 to July 2014 then it is marked settled, my question is should this not have been marked as settled in july 2012 when the debt was cleared, after having spoke to Ikano thay have said because i did not close the account when it was settled it then went dormant for 2 year before they recorded it as settled, is this correct as it means that this debt will stay on my credit file until 2020 before dropping off, the DMP was arranged by Gregory Pennington, i never delt with Ikano directly and was not awere that i would have to close the account myself when it had been paid off, can anyone clarify if this is the case. Thank you

    —

    Reply

    • Debts in a DMP are normally all paid off at the same time – do you know why this debt was settled in July 2012 when a lot of your other debts were so bad you went into an IVA?

      Reply

      • Thanks for your reply Sara,
        it must have had a smaller balance therefore was paid off quicker, i do remember being told that if i went into a DMP that all debts would need to be included and that no debt had a priority of any of the others no matter how small the balance was it needed to be included so that all creditors would be treated fairly when it came to the allocation of payments .

        Reply

  41. Hi, I completed my IVA in April and got the completion report in July.
    I moved house in June and got utilities in my own name and got on the electoral roll too.
    My credit score was moving up a little then it jumped up, then a month or two later it has dropped, a lot, to lower than it was in my IVA years.

    I cant understand what has happened to make it dip so much, I thought it would start to improve rather than drop dramatically.

    Any ideas why this might be?

    Thanks
    Rob

    Reply

    • You need to look at your credit report in detail and find out what has changed. Look at reports on all 3 credit reference agencies (see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how) and work your way through, line by line. You are looking for something new, a new missed payment, new default, a new link to another account or a mistake with your previous addresses. Perhaps there was some bill left over from your previous house that hasn’t been paid? There will be something, until you find it it’s hard to know what to suggest.

      Reply

  42. Hi.
    I’ve got my final payment of my 6 year IVA on 7/2/2019, start date of IVA was 20/2/2013. I’ve spoken to my IVA firm today and they’ve said it takes 2-6 months to get the completion certificate through after the completion date.
    I’ve checked my credit report with Experian and Clear score, all looks good, no defaults, firms i owe money to in the IVA aren’t on it. But it obviously mentions the IVA. Will this disappear from my credit file 6 years from the start date of the IVA even though the completion certificate hasn’t been issued? Also i realise i will remain on the insolvency register for a while afterwards, i’m wanting to improve my credit score, not sure if this is possible while being on the register?
    With Experian its currently 692/999.
    Thanks
    Jon

    Reply

    • Well done!

      The IVA marker will continue to show on your credit records until a completion certificate is issued. You will be on the Insolvency register for 3 months after that (see https://debtcamel.co.uk/end-of-iva/) but this won’t affect your credit score.

      Could you come back and say what your Experian score jumps to when the IVA marker goes? people love to hear this sort of infomration, and as all your debts have already gone, you have a “simple case”.

      Reply

  43. Hi,

    I entered into an IVA back in April 2014 and settled all debts with a one of payment to all creditors at the same time. All but three creditors have reported the accounts closed and no more monies owed. But for some reason these three creditors still to this day report an outstanding balance and that no payments have been made showing on Callcredit & Equifax. How can this be when they accepted the payment and terms & conditions of the IVA and I have been issued with the completion certificate ?

    I have wrote to the credit agencies asking them to update their records as I believed they were reporting false information as i thought it should all be showing clear. They replied claiming that this was the correct information provided by the creditors and I should contact them instead. Which I did and the creditors claim the issue is with the credit agencies and how they interpret the information they are being provided.

    I am lost with this! If you could shed any light on this matter it would be much appreciated.

    Many thanks
    D

    Reply

    • This is not the credit agencies fault – the lenders should report here is a zero balance. There should also have been a default added on or before April 2014. Who are the three creditors?

      Reply

  44. Hi just made my last payment on my IVA, 6 years in total. I am wanting to move house in a couple of months. Am I better waiting the 3 months until removed off the register before looking at remortgages? My IVA now says discharged on my credit report, will this help? Many thanks

    Reply

    • This will depend on the policy of the mortgage lender you apply to. Most will ask you if you have been insolvent, so it may be that having the entry showing on the Insolvency register is not especially significant. The marker on your credit record should have already dropped off.

      I suggest you talk to a mortgage broker, who may know how some individual lenders will view this.

      Reply

      • Thank you, could you direct me as to where I would find the default date on each of my creditors so that I can ensure they have the correct date. Just reading your guidance (very useful). I am registered with credit score and it lists my creditors all as closed however there is only last updated dates which vary from 2018 to 2019. Thank you

        Reply

  45. I finished paying my IVA off in April and will be expecting my completion certificate around July. From what I can gather my debts will be wiped off my credit report once the certificate will be issued and all evidence of an IVA wiped off my credit report in February – 6 years after initiation of the IVA. I have already started the ball rolling with improving my credit score with the likes of Loqbox and a bad credit card.

    I am looking to move house in around 12 months time, I understand the interest rates will be dictated by my credit score. When is the very earliest I can move? Is it once I have my completion certificate or in February when there is no IVA record on my credit report?

    Reply

    • You need the IVA and all the debts in it to have been removed from your credit record. Have you checked all the debts have default dates on or before the date of your IVA?

      Reply

  46. Hi

    Our IVA completed last month , made our last payment June last year , and its 6 years from the start date next week so hopefully it will drop off our credit report then . My query is though that on my wife’s report her creditor has listed missed payments on her report for every month since the IVA started , shows as 60 missed payments which I thought seemed odd . Hopefully these will disappear but is this normal . On the completion report it says a different company to the one on the credit report but both firms are under the same parent company and the account number is the same .

    Reply

    • “Hopefully these will disappear ” no they won’t… She needs to complain and ask for a default to be added with a date of the start of the IVA. Then it will disappear.

      Reply

      • Hi Sara

        Thanks for the reply Sara , who should we complain to ? The creditor , credit report firm or our IVA firm . We tried to raise a dispute with the credit agency and I says they would only remove if they got word from the creditor , which seems unfair as this shouldn’t be on there .

        Reply

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