Will completing an IVA early boost my credit score?

Dear James,

If you pay off on IVA early does your credit score improve from that moment or only after the five years has ended?

Greg, Manchester

Dear Greg,

Lenders are likely to view an IVA that has been ‘completed’, whether after five years or ahead of schedule, as less adverse than an outstanding arrangement. However, in terms of the effect on credit scoring, the simple fact that you’ve entered into an IVA at all is likely to put a major dent in your credit score for at least six years, regardless of the current status. All you can really do is to make sure your report is up to date, particularly once the IVA concludes, and that any individual debts that were included in the IVA are then also updated as satisfied. If there was a good reason behind the need for an IVA you might like to add a ‘notice of correction’ on your credit report to explain this. Once the IVA drops off your report, six years from the start of the arrangement, the notice will disappear with it. (September 2014)


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