IVA and Your Credit Score: What to Expect

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Key takeaways

An IVA stays on your credit file for six years from when it starts, not from when it ends
The public Individual Insolvency Register entry is removed three months after the IVA ends
Lenders see the IVA marker and the status of included accounts, and most will decline you while it runs
Check all three credit reports, stay on the electoral roll and keep paying other bills on time
Avoiding a formal solution does not remove missed payments or defaults from your record

Many people put off dealing with debt because they are afraid of what an IVA will do to their credit score. The truth is that an IVA does leave a mark, but if you are already missing payments your credit file is probably damaged anyway. What matters is how long the effect lasts, what lenders will see and how you can rebuild. This guide explains what an Individual Voluntary Arrangement does to your credit record in the UK and what you can do about it.

How long does an IVA stay on your credit file?

An IVA is normally recorded on your credit file for six years from the date it starts. That is different from the length of the arrangement. If your IVA runs for five years, it will remain on your file for a further year after it ends. If it runs for six years, the record will drop off when it ends. The credit reference agencies, Experian, Equifax and TransUnion, each hold their own record, so check all three.

There is also the Individual Insolvency Register, a public list that is separate from your credit file. GOV.UK says the entry is removed three months after the IVA ends. Employers, landlords and others can search it, which is why some people worry about privacy as well as borrowing.

What lenders see

Lenders see the IVA marker, any missed payments before it and the status of the accounts included. They are not told your score, because there is no single universal score. Each lender makes its own decision using your report plus its own rules. Most mainstream lenders will decline applications while an IVA is active, and many will for some time afterwards. Our guide to how credit scores work explains why scores vary between agencies.

What happens to the accounts in the IVA

Accounts included in the IVA are usually closed or defaulted. Creditors may record the account as "in an arrangement" or as a default, depending on how they report it. Accounts you keep outside the IVA, such as a mortgage or a current account, continue to be reported as normal, although your bank may review the account. Tell your practitioner about every account.

Can you borrow during an IVA?

Borrowing during an IVA is usually restricted. Most agreements prohibit taking on new credit above a small limit without your practitioner's permission, because new debt could reduce what you can pay. Mainstream lenders are unlikely to lend anyway. Be wary of high-cost lenders who target people with poor credit, because the cost can be very high and it can undermine the arrangement. For a lender-by-lender look at what happens next, read our guide to credit cards and loans after an IVA.

Practical steps to protect and rebuild your credit

You cannot remove an accurate IVA entry early, but you can make the rest of your file as healthy as possible.

Check all three reports for errors, such as accounts shown as open that should be settled, and challenge mistakes. See how to correct errors on your credit report.
Get on the electoral roll at your current address, which helps lenders confirm who you are.
Keep paying everything outside the IVA on time, such as rent, phone and utilities.
Keep the IVA going without missed payments, because a failed arrangement can be worse for your record.
Use a basic bank account sensibly, avoid overdraft reliance and keep your address stable.
Build positive history after the IVA gradually, for example through a small amount of credit that you pay off in full each month, once your practitioner and lenders allow it.

What if you avoid an IVA?

Avoiding a formal solution does not protect your credit file if you are already behind. Missed payments, defaults and county court judgments each stay on your report for six years from when they were recorded. A formal arrangement can sometimes stop the damage getting worse, because interest freezes and creditors stop pursuing the debts. See our guide to CCJs for another common entry.

A long-term view

The effect of negative information fades with time, particularly if the rest of your file is clean. Many people find that they can obtain basic credit products within a year or two after the IVA ends, and mainstream products after more time. Mortgages are possible for many people after an IVA, often with a larger deposit and a specialist lender. There is no fixed timetable, and each lender sets its own rules.

How the record looks in practice

Imagine your IVA starts in March and runs for five years. It will appear on your credit file from March and remain until the sixth anniversary of the start date, so it stays for one year after the arrangement ends. The public register entry is removed three months after the IVA ends. For lenders, the longer ago the IVA began, and the cleaner your recent record, the less weight it carries. Someone who completed an IVA three years ago and has paid everything on time since is in a very different position from someone who is still in the arrangement.

Common myths

Some people believe an IVA stays on your file for ever, or that you cannot get any credit afterwards. Neither is true. Others think a credit repair company can remove it early: if the entry is accurate, nobody can. Another myth is that avoiding a formal solution protects your score. If you are already missing payments, the damage is happening anyway, and an arrangement can stop it getting worse.

Frequently asked questions

Does an IVA ruin your credit forever?

No. The entry stays on your file for six years from the start date and then drops off. The effect on lenders usually fades before that if the rest of your file is clean.

Will I be able to get a mortgage after an IVA?

Many people can, but it may need a larger deposit and a specialist lender, particularly in the first few years. Each lender has its own rules, so speak to an independent mortgage adviser.

Can I remove an IVA from my credit file early?

Not if the entry is accurate. You can ask the agencies to correct mistakes, such as wrong dates or balances, but a correct IVA record stays for its full period.

Is an IVA better for my credit than bankruptcy?

Both stay on your credit file for six years from when they start. They differ in other ways, such as length, cost and control of assets, so compare them with an adviser.

Sources and further reading

Individual Voluntary Arrangements — GOV.UK
Search the bankruptcy and insolvency register — GOV.UK
Credit — MoneyHelper
Credit reference agencies — Information Commissioner's Office

This page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.

Written by

MoneyBrink Editorial Team — Editorial team

The MoneyBrink Editorial Team researches, writes and reviews every guide on this site. We work from official UK sources such as GOV.UK, the Financial Conduct Authority, MoneyHelper and the Money and Pensions Service, explain things in plain English, and update articles when the rules change. We do not sell financial products and we do not give personal advice.

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