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[IE2009]

Can I get credit cards again when my IVA is finished?

[Steve Jackson]

Hi there

Yes, you will be able to get credit cards again after your IVA. However, it may take some time for your credit history to build up and so do not expect to be offered anything with a very large limit. For more information about how your credit rating is effected before and after an IVA, see my recent article on the subject: https://www.beatmydebt.com/news-article ... gement.htm

[Hayden]

Hi

Interesting that you ask about getting credit cards once your IVA is finished. Remember, when your IVA is completed you will feel a lot better off financially. You will be able to keep all of the monthly money you have been used to paying into your IVA so you may find that you do not need to use credit cards at all. I think one of the great things about being in an IVA is that it teaches you to live within a budget and dare I say it save a little. I for one am looking forward to my IVA finishing so I can have all my money for me and start a proper savings plan. I certainly will not be using credit cards in the future!!

[Steve Jackson]

You make a good point here Hayden.

Many people I have worked with over the years find that they do not need to take further credit after their IVA is finished because they have learned to live within their budget. In fact they find that they are able to save reasonable sums relatively quickly as they save all of the money which was being paid into the IVA.

[Jess]

Hi IE2009

I would suggest that you obtain just one credit card to begin with, put a small balance on it and set up a direct debit to make payments. This will get your credit history back in business, so to speak. Creditors base their decisions on your credit history so if you have completed an IVA, they will notice that the IVA is complete but there will be no regular payments showing up on your file. Starting to make regular payments on a small balance will provide creditors with something they can consider.

However, it should be noted that even people with perfect credit scores or history are being rejected for credit so, in this day and age, don't take any rejections personally.

And...if you do find yourself in the same position again, you can always go for a second IVA!!

Good luck

[Steve Jackson]

Jess is right, the best way to start building up your credit score again after an IVA is to get a small credit facility such as a credit card with a small limit and start to use it responsibly. Of course the only problem is finding a card company that will give you the card in the first place.

Your best option is to speak with the bank you are banking with and find out from them what they will require you to do before they will start a credit card account for you. But in my experiance many banks will actually required you to be out of your IVA for 12 months and show that you have been running your account well for them to consider giving you a card so it is not a swift process.

However, whatever you do in the future, I definitely would not recommend getting back into a position where you need a second IVA. Living within your means and without credit if you can help it is much the best option.

[michelle2011]

It is not possible for everyone to have a credit card and use it wisely. If you are at all unsure, I would live off a cash diet for awhile.

[Geraldine]

I agree Michelle. Since I have got through my bankruptcy, I simply use my debit card for day to day purchases and things on the internet. If I want anything else I have to save for it. It feels so much better not paying the banks any more interest...