It is possible to rebuild your credit after an Individual Voluntary Arrangement (IVA), but it may take some time and effort. An IVA is a legally binding agreement that allows you to reach an agreement with your creditors to pay off your debts over an extended period of time. While an IVA can help you to get your finances back on track and avoid bankruptcy, it may have a negative impact on your credit rating.
Here are a few steps you can take to rebuild your credit after an IVA:
- Pay your bills on time: One of the most important factors in determining your credit score is your payment history. Make sure to pay all of your bills on time to improve your credit score.
- Reduce your debt burden: High levels of debt can have a negative impact on your credit score. If possible, try to pay off your debts as quickly as possible to reduce your debt burden.
- Avoid applying for too much credit: Every time you apply for credit, it can have a negative impact on your credit score. Try to avoid applying for too much credit, and only apply for credit when you really need it.
- Consider a credit-builder loan: A credit-builder loan is a loan specifically designed to help individuals rebuild their credit. By making regular payments on the loan, you can improve your credit score.
It may take some time to rebuild your credit after an IVA, but with discipline and dedication, it is possible to improve your credit score.