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IVA and Your Credit File: Impact, Duration & Rebuilding
An IVA affects your credit rating for 6 years - but the damage is not permanent. Here is exactly how your credit file is affected and how to rebuild once your IVA completes.
How Does an IVA Affect Your Credit File?
When you enter an IVA, it is recorded by all three major UK credit reference agencies - Experian, Equifax, and TransUnion - for 6 years from the date your IVA was approved. The clock starts at approval, not at completion.
This means if your IVA was approved in January 2022 and completes in January 2027, the IVA record is removed from your credit file in January 2028 - one year after completion.
What Appears on Your Credit File?
- The IVA itself - start date, type, and supervising IP
- A satisfied or partially satisfied status on each debt included in the IVA
- Default markers on each debt (usually already registered before the IVA)
- Completion status once your IVA finishes
- Any missed payments recorded before the IVA started
What Cannot You Do During the 6 Years?
- Obtain a mainstream mortgage or remortgage
- Get personal loans at competitive rates
- Obtain standard credit cards
- Pass credit checks for some rental properties
- Open some bank accounts (basic accounts remain available)
- Get mobile phone contracts with major networks (some will decline)
How to Rebuild Your Credit After an IVA
Rebuilding is entirely achievable. It takes time and consistency, but thousands of people successfully rebuild their credit after an IVA.
- 1Check your credit reports as soon as the 6-year mark passes - confirm the IVA has been removed from all three agencies and that included debts show as satisfied. Dispute any errors.
- 2Register on the electoral roll at your current address - one of the simplest improvements to your credit score
- 3Open a credit builder card - designed for people rebuilding credit. Use it for small purchases and pay off in full every month without fail
- 4Pay all bills on time - utility bills, phone contracts, and subscriptions all contribute to your credit history
- 5Build a savings history - some lenders view consistent saving favourably
- 6Avoid multiple credit applications in quick succession - each leaves a hard search on your file
Getting a Mortgage After an IVA
A mortgage after an IVA is very achievable with patience. Most high street lenders will not consider you until the IVA has been off your credit file for 1-3 years. Specialist adverse credit mortgage lenders may consider applications sooner - typically 1-2 years after IVA completion - but at higher rates.
- Wait for the IVA to be removed from your credit file before applying to mainstream lenders
- Build the largest deposit possible - aim for 15-25% minimum
- Use a specialist mortgage broker experienced in adverse credit
- Be honest with lenders about your IVA history
- Consider a lower value property initially and trade up as your record improves
How to Check Your Credit File
- Experian: Free monthly updates at experian.co.uk or the Experian app
- Equifax: Free access via ClearScore (clearscore.com)
- TransUnion: Free access via Credit Karma or MSE's Credit Club
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This information is for general guidance only and does not constitute financial or legal advice. An IVA is a formal insolvency solution - fees apply and your credit rating will be affected. Seek independent professional advice before making any decisions.