Will an IVA affect my credit rating?

Having an IVA on your credit file shows that you’ve had problems repaying debts. This means your credit score will go down as you’ll be considered a high-risk customer. 

Your score will be affected for as long as you have an IVA but it will gradually improve if you make your repayments in full and on time.

Defaulting on your IVA will make your score worse. 

Can I still get credit with an IVA?

You might still be able to get some types of credit with an IVA, but you’ll be viewed as a risky prospect and are likely to be charged higher interest. 

You can’t apply for more than £500 of credit unless you have your insolvency practitioner’s written permission.

Discover more in our guides on loans and IVAs and credit cards and IVAs.

Will I pass a credit check during an IVA?

Find out if you can pass a credit check when you have an IVA.

When your IVA ends, it may remain on your credit file for a while. This is because most IVAs last five years but they stay on your credit file for six.

Until the IVA drops off your credit report, your score will remain low and lenders will be wary about allowing you to borrow.

Even when the IVA is removed from your credit report, your score is likely to remain low. This is because you’re unlikely to have borrowed much during your IVA so there won’t be much credit information on your file. Now is the time to start building your credit score back up.