Will an IVA affect my credit score?

An IVA will have a significant impact on your credit rating. It will be registered on your credit file and remain there for 6 years from the date it was approved - regardless of when it completes.

During the IVA period, you will find it very difficult to obtain credit. Most mainstream lenders will decline applications, and those who do offer credit may charge much higher interest rates.

Your IVA will also be recorded on the Individual Insolvency Register, which is publicly accessible online. However, it's unlikely that anyone would check this unless they have a specific reason to do so.

It's important to put this in perspective: if you're already struggling with debt, your credit score is likely already being affected by missed payments, defaults, and CCJs. An IVA provides a structured way to address the debt, and once completed, you can begin rebuilding your credit.

After your IVA is completed and the 6-year mark passes, the record is removed from your credit file. Many people find they can obtain credit again relatively quickly after this point.