How to improve your credit score after an IVA
If you’re struggling with significant levels of debt, an Individual Voluntary Arrangement (IVA) is one option to regain control of your finances. However, the lasting impact of an IVA on your future financial health, and in particular your credit score, do need to be seriously considered before entering into the IVA process.
In this guide, we explore to what extent an IVA can impact your credit rating. We also provide our top tips for rebuilding and improving your credit score after completing your IVA.
Do IVAs affect credit rating?
Yes. Entering into an IVA will certainly affect your credit rating. Unfortunately, there is no way around this.
An IVA is a form of insolvency. For this reason, by entering into an IVA, you’re signalling to credit reference agencies and creditors that you, as an individual, are insolvent. As a result, credit reference agencies such as Equifax, Experian and TransUnion will record that you have been in an IVA and this mark will stay on your credit report for six years from the day your IVA is approved.
The major lasting consequence of this is that you will likely struggle to secure credit in the immediate future. This is because your IVA mark on your credit file signals to potential lenders that you are (or have been) struggling to repay past or current debts, making you a high-risk borrower.
Naturally, this means that in the years during and immediately following your IVA, you are likely to either be rejected for credit such as personal loans, mortgages and credit cards, or face very high interest rates with any credit you are approved for.
However, it’s important to remember not to rule out an IVA simply because you’re worried about damaging your credit score. Indeed, if you’re in a position in which an IVA is a serious option, the chances are you’re probably already struggling to service your existing debts. If this is the case, your credit score is likely already being damaged.
How to rebuild your credit rating after an IVA

