Does an IVA affect credit score?
Yes. An IVA is likely to lower your credit score.
While you have an IVA, you usually can’t borrow more than £500 without written permission from your Insolvency Practitioner (IP), as set out in your IVA terms. This includes loans and credit cards. Bills like gas, water and electricity are not considered borrowing.
If you borrow without permission, it could put your IVA at risk.
Why is credit hard to get in an IVA?
Your IVA is shown on your credit file for six years. It’s also listed on a public register.
Most lenders will say no to new credit. If they say yes, it may cost more. This can make it harder to manage your money.
What happens to my credit score after an IVA?
When your IVA is finished, the Insolvency Register is updated and lenders are told.
Your IVA stays on your credit file for six years from the start date.
Can I rebuild my credit score after an IVA?
Yes. It takes time, but you can improve it.
You can help by:
- Checking your credit report is correct
- Fixing any mistakes
- Registering to vote
- Paying bills on time
Some people use small amounts of credit later, but only if they can genuinely afford it and it fits with their financial recovery.
Can I get a mortgage with an IVA?
Maybe. It can be easier once your IVA is gone from your credit file. Rebuilding your credit score and saving may help strengthen future mortgage applications.
Remember, after an IVA, many people start saving from scratch. Using your old IVA budget as a guide and setting aside the money you previously paid into your IVA can help you rebuild savings steadily over time to work towards a deposit.
Mortgage availability, interest rates and deposit requirements vary by lender and individual circumstances.
How property and equity work in an IVA →
Work and income
Will my employer know?
Usually not. We don’t tell your employer. They would usually only know if they check your credit file or if your role requires disclosure.
Will it affect my job?
Most jobs aren’t affected. Some roles in finance or law may have rules, so check your contract.
What if I’m self-employed?
Many people keep running their business during an IVA. Learn more about whether a self-employed IVA is suitable for your situation.
What if I lose my job?
If you lose your job, tell your IP straight away. Payments may be lowered for a time, or you may be able to get a short break from repayments.
Moving abroad
Can I move abroad?
Yes, if you can still afford your payments. Tell your IP before you move.
Should I let my IVA fail if I move abroad?
No. If it fails, your debts come back and creditors can take action. Always ask for help first.
Thinking about an IVA but unsure what’s right for you?
Get free debt advice online or call 0800 316 1833 to speak to one of our experts. We’ll explain the solutions available, check what you may be eligible for and help you choose the option that best fits your situation.
See if an IVA is right for me