How to rebuild your credit score

How to rebuild your credit score

If you’ve recently finished paying off an IVA or you’re approaching the end of your agreement, you won’t be surprised to find out that your credit rating has taken a hit. Usually, at the end of an IVA, you can expect your score to be within the 200 to 330 range – which is low.

But there is a silver lining. You’ve now cleared your unsecured debts and proven that you can live within a budget and take responsibility for your finances. The tough part is over.

It’s now time to start rebuilding your credit and showing creditors that you’re a great candidate for future credit. This will take time, patience, and a little effort from you. But having a strong credit score is always worth the work.

Whether your financial goal is getting a mortgage for your forever home, saving up for the wedding of your dreams or just knowing you have great credit available if you need it, we can help you achieve it. Read on for some tips on how to rebuild your credit score.

Get some closure

When you make your final payment towards your IVA, we’ll write to you to let you know. Then, within six months, we’ll issue you with your completion certificate. As soon as you receive this, it’s a good idea to send a copy to each of the three main UK credit reference agencies; Call Credit, Equifax and Experian. You should also check that your IVA has been marked as completed on the Insolvency Register.

Know your score

The first step of rebuilding your credit score is to know exactly where you stand right now. You can check your credit score with either Call Credit, Equifax or Experian. It’s also a way of making sure there are no inaccuracies on your credit file. If you do find anything that doesn’t look right, you can contact the credit reference agency to find out more.

Roll up, roll up!

Here’s a quick win for your credit score – sign up to the electoral roll at your property. It reassures lenders that you have a permanent address and is a little extra proof that you are who you say you are.  It’s also something that’s easily forgotten if you’ve recently moved to a new home. It’s straightforward to register to vote online, just visit the gov.uk website.

Connect with caution

If you have a joint credit account or have made any form of financial application with someone else in the past, it may be noted on your credit report that you’re financially connected. While this can be a great thing when you both make your payments on time and have strong credit, if your partner has poor credit, this can potentially drag down your score. If you have a joint account you don’t use with someone with poor credit, you could improve your credit score simply by closing it.

Rebuild your credit rating with care

Throughout the life of your IVA, however long that is, applying for credit isn’t an option. But just because your agreement is winding down, it doesn’t mean that you should rush out into the world and start signing up for every credit card going. Making multiple credit applications – and being rejected for a low score – could harm your credit score further. Instead, you should carefully choose a credit card that’s designed for rebuilding your credit, and make sure there’s a high of chance of approval before you go ahead and apply. Need a little help? Just sign up for our Post-IVA consultation to get advice on the best credit cards for rebuilding your credit after an IVA.

Taking all these steps will not only help you rebuild your credit, but also safeguard your credit score for the future.

The very best way to rebuild? Book a post-IVA consultation with one of our expert team. We can provide guidance to help you start rebuilding your credit. Because at Creditfix, we’re here for the life of your IVA – and beyond.