After an IVA, you are advised to make an extra effort to repair your credit score nobody knows when they might need financial support.

Credit Score After Iva

A Completion Certificate is issued when your IVA ends. The effect on your credit report depends on whether your IVA ended within six years or you had it for more than six years. If your IVA lasted less than six years, the Public Record section on the credit report is updated to show your IVA has ended. It remains on the report for six years from its commencement. If your IVA lasted more than six years, the IVA marker disappears from the credit report. Any debts in your IVA or any CCJs will have dropped from your record.

Initial action after IVA

Ensure you get an IVA Completion Certificate from your Insolvency Practitioner (IP). Your IP signs the certificate indicating the IVA has ended officially. The Insolvency Service marks your IVA record as 'Completed'. You can then start rebuilding your credit rating.

Reestablishing your credit score

Obtain your credit report from your credit bureau and go through it carefully. It will give you information on your current status that you will work on. Scrutinize it for any negative information since your IVA started. No new information should be included regarding your debts because after your IVA was recorded by the credit reference agencies; any anomalies must be disputed. The IVA should not be included in your credit report after six years are over.

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Improving your rating

It is a great achievement going for six years without getting credit. From this point onwards, you have to ensure you don't get into difficulties when repaying debt. Therefore, you need to work on your financial management skills. For a start, make sure your expenditure doesn't exceed your income. Set reminders or automatic debits from your account to avoid late repayment.

What is a credit score

A credit score is needed for you to be able to get a loan or credit. The reason behind this is because it will help financial institutions to determine your creditworthiness. They will also see every loan that you made and the payment history that you have. Find out more about it by reading the information below.

Credit scores are calculated based on the proprietary algorithm. This will include the person's outstanding debts, payment history, and the length of the individual's credit history.

Credit scores can range from 300 to 850. The higher the individual's score, the lower the risk. People who have lower credit scores are considered high risk, which will make lending companies ask for more requirements.

About Fico scores

About Fico Scores

Fair Isaac Corporation is the one who established FICO, and it is one of the most commonly used credit scoring systems today.

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According to FICO, 90% of the most reputable and respected lenders today are making decisions according to this kind of credit scoring system. Get to know more about Fico scores by reading the information below.

How are credit scores calculated?

How Are Credit Scores Calculated

The weight of each of the five categories are; 30% of amount owned, 10% is for the new credit, 15% accounts for the length of credit history, 10% is the credit mix and the last 35% accounts for the person's payment history.

The FICO score takes into consideration positive as well as negative aspects of the credit report. The percentage or the weight of any of the categories mentioned above may differ from a person to another depending upon the information available in the credit report.

The FICO score takes all of the information from your credit report. However, the banks or any other lending institution might look at your income, type of credit and employment history when you apply for a loan or mortgage.

Once a certain lender asks for a client's credit report, they can also ask for the Fico score. Other sources say that your Fico score will include 35% of your payment history, 30% of your credit utilization, and 15% as to how long have you been borrowing.

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Explanation of credit score ranges

Explanation Of Credit Score Ranges

It is important to know the category that you fall into when it comes to credit score for you to be aware. The range of a credit score can go from 300 to 850. Always remember that the higher your score, the higher the chances of you to qualify for a loan. There will also be instances where a financing company is okay with 650 scores, while the other is fine with a 750 score. It will all depend on the lender itself.

A lender or a bank will check your credit score if you qualify for the application that you are requesting. Here are some of the credit score ranges that you should know.

Bad credit score

People with a credit score below 579 is known as high risks. Foreclosures, poor payment history, and bankruptcies are the reasons why people fall into this category.

Good credit score

A good credit score ranges from 680 to 719. People with this credit score can expect approvals and interest rates that are better.

Very Good

A very good credit score ranges from 720 to 799. People with this credit score is known to be small risks, and they often get loan amounts that are higher than usual.


An excellent score ranges from 800 and above. Financial freedom is expected to people with this score.

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Other things you can do to improve your credit score

Other Things You Can

The credit score ranges from 300 (the lowest credit score possible) to as high as 850 (the highest credit score possible). Higher you credit score, greater are your chances of getting your loan or credit request accepted quickly.

However, if you are facing issues with your low credit score, following are some of the tips or techniques that you can use to improve your credit score:

You should start by minimizing your total debt. The increase in your total debt value is going to affect your credit score negatively.

You should also be very careful with your bills and other credit payments. If you pay them on time, this will gradually improve your credit score.

Have a closer look at your credit balances. You do not want to cross the credit limits because they deteriorate your credit score.

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