How Long Does an IVA Last on Your Credit Report? Answer

Are you wondering ‘how long does an IVA stay on your credit file’? If so, this is the right place for you.

Every month, over 170,000 people visit our website for guidance on debt solutions. We understand that you may be confused about the IVA process and worried about paying off a debt. but you’re not alone.

In this article, we’ll explain:

• How an IVA can affect your credit score.
• How long an IVA stays on your credit report in the UK.
• How to get an IVA removed from your credit file.
• How to improve your credit score once your IVA ends.

Our team includes people who have faced debt issues themselves. We know how hard it can be, and we’re here to help. We aim to make things clear and easy for you and offer advice that is easy to understand and follow.

Let’s get started.

So, How will an IVA Affect My Credit Score? 

So, how does IVA affect credit rating? When your IVA proposal is successful and your IVA gets set up, then a record of your IVA is entered within your credit report.

Having the mention of an IVA within your credit report will result in your credit score going down drastically. 

Furthermore, the mention of an IVA will also prevent you from obtaining any type of credit above £500. 

Hence, an IVA severely affects your ability to obtain any type of credit. In short, an IVA and credit scores don’t pair well and could make getting a loan challenging.

So, now the question is: how long will an IVA remain on your credit report and how badly does an IVA affect credit rating?

For a standard IVA that lasts five years, the mention of your IVA will remain in your credit report for six years since the date it was registered. So, for a standard IVA, it lasts for 12 months in your credit file after the IVA ends.

Its important to note that the IVA does not get removed from your credit file earlier if your IVA ends early. It is simply marked as ‚Äúcomplete‚Äù within your credit file. So, do IVAs affect credit rating in this instance? Yes, it may.

How long does bankruptcy last on your credit report UK?

Bankruptcy lasts for 12 months, however, it remains on your credit report for 6 years. During these 6 years, it will likely be very difficult to take out any form of credit. It may also be difficult to take out any credit after the 6 year period, as creditors can ask whether you’ve been bankrupt in the past.

Both bankruptcy and IVAs are formal debt solutions. Bankruptcy is usually only 12 months long, whereas IVAs last at least 5 years. However, entering into bankruptcy means you risk any assets or property.

Is it Possible to get My IVA removed from My Credit File? 

You typically do not have to do anything manually when it comes to your credit file.

Your IVA should automatically be added, removed or marked as ‚Äúcomplete‚Äù depending on what the status of it is. That’s what typically happens to a credit score after IVAs end.

However, you should definitely keep a close eye on your credit file to ensure there arent any mistakes and the entries within it reflect what your financial circumstances actually are. 

If you notice any discrepancy such as the mention of an IVA within your credit file after six years have passed, then you can write to credit reference agencies and ask them to fix it.

Please note that you may have to provide evidence for your claim such as a letter from your insolvency practitioner. You should keep an eye on what happens to your credit rating after an IVA ends to make sure your credit file is updated.

Getting a Note Added

You can also ask credit references agencies to add a special note next to your IVA entry on your credit record which would explain why you had to take out an IVA such as due to a serious illness or accident, etc. 

How do I Improve My Credit Score once My IVA Ends? 

Once your IVA ends, the mention of it will remain in your credit record for another 12 months.

Since an IVA puts restrictions on how much credit you can obtain, you may not be able to do much to rebuild your credit score during these 12 months. 

That being said, your IVA will definitely start to look less intimidating to lenders once it has been marked complete.

This is because lenders tend to look at your most recent financial history and information. 

Rebuilding Your Credit Score

You can take steps to rebuild credit rating after IVA completion. You could get a credit-building credit card. 

As the name suggests, these types of cards are designed for individuals looking to improve their credit scores.

Try and use this card for your essential daily expenses such as fuel, groceries, utilities, etc because they are great tools for building credit score after IVAs end.

Only buy as much as you can afford and be sure to pay the outstanding balance in full at the end of each month. 

As you start paying your outstanding balance in full every month, your credit score will gradually start to improve. 

You may also be worried and asking, will IVA affect my partners credit rating? The answer is no, your partner’s credit worthiness won’t be affected.