How Will an IVA Affect My Credit Score? What to Expect
Published 19th of September 2016·Updated 11 April 2026
Reviewed by: Reviewed for accuracy April 2026
An Individual Voluntary Arrangement (IVA) will significantly damage your credit score from the moment it is registered. The IVA marker stays on your credit file for six years from the start date, even if your arrangement completes in five years. During this period, obtaining new credit is very difficult, and taking on credit without your insolvency practitioner's approval can breach the terms of your IVA.
Short Summary
An IVA is registered on the Individual Insolvency Register as soon as it is approved. The three credit reference agencies, Experian, Equifax and TransUnion, are notified automatically and add a marker to your credit file.
The six-year period begins on the date your IVA starts, not the date it finishes. If your IVA runs for five years from January 2022, the marker stays on your file until January 2028.
Your partner's credit score is only affected by your IVA if you have a financial link, such as a joint bank account, joint mortgage or joint loan. Simply living together does not create a financial association.
Free advice about IVAs and their credit implications is available from StepChange (0800 138 1111) and Citizens Advice. An insolvency practitioner can also explain the full impact on your specific circumstances before you commit.
How long does an IVA affect your credit rating?
An IVA affects your credit rating for a minimum of six years. The marker is placed on your credit file on the date your IVA is approved by your creditors, and it remains for six years from that date regardless of when the IVA completes.
For most people, an IVA runs for five or six years. If your IVA lasts five years and starts in March 2022, your IVA marker clears in March 2028 - one year after the arrangement ends. If your IVA lasts six years, the marker clears at the same time the arrangement ends.
The marker tells lenders that you have entered a formal debt arrangement. Most mainstream lenders including Barclays, HSBC, Halifax and Nationwide will decline credit applications while the marker is active.
What types of credit can you get during an IVA?
Obtaining credit during an IVA is highly restricted. Your IVA agreement typically requires you to obtain written permission from your insolvency practitioner before taking on any new credit above £500. Taking credit without permission can be treated as a breach of the IVA terms.
The types of credit most likely to remain accessible during an IVA are:
| Credit type | Likely outcome | Notes |
|---|---|---|
| Basic bank account | Accessible | No credit check required |
| Pay-as-you-go mobile | Accessible | No credit agreement involved |
| SIM-only contract | Possibly accessible | Lower risk for provider |
| Handset contract | Difficult | Involves a credit agreement |
| Credit card | Very difficult | IP permission required above £500 |
| Personal loan | Very difficult | IP permission required above £500 |
| Mortgage | Very difficult | Almost no lenders will consider during IVA |
If you need to borrow during your IVA, discuss it with your insolvency practitioner first. Breaching your IVA terms can result in the IVA failing and your creditors being able to petition for your bankruptcy.
What happens to your credit score after your IVA completes?
When your IVA completes, your insolvency practitioner issues an IVA Completion Certificate. The Individual Insolvency Register is updated to show the IVA as complete. You should then contact Experian, Equifax and TransUnion to confirm that each has marked the IVA as satisfied rather than active.
Check that all debts included in the IVA are also marked as satisfied on your credit file. Any creditor who has not updated their entry should be contacted directly with a copy of your Completion Certificate.
Once the marker clears at six years, you start with a thin credit history rather than a severely damaged one. The rebuilding process involves establishing new positive payment history, which typically takes 12 to 24 months to produce meaningful improvement.
Will an IVA affect your partner's credit score?
An IVA only affects your partner's credit score if you have a financial association. A financial association is created when you hold a joint financial product, such as a joint bank account, joint mortgage, joint loan, or joint credit card.
If you share a joint account with your partner, your IVA marker will appear on your partner's credit file as a financial associate entry. Lenders viewing your partner's credit file will see this association and may factor it into lending decisions.
To break the financial association, both of you need to contact Experian, Equifax and TransUnion and request a Notice of Disassociation. This can only be done once the joint financial product is closed. As long as the joint account or loan remains active, the association remains.
Living at the same address as someone with an IVA does not create a financial association on its own.
Does an IVA affect your employment?
An IVA does not appear on a standard DBS check and will not affect most employment situations. However, some roles in financial services require credit checks as part of pre-employment screening. Jobs regulated by the FCA may require disclosure of an IVA. Certain roles in the Civil Service, legal sector and accounting firms may also carry restrictions.
If you are concerned about your specific employment situation, check your employment contract or ask your HR department whether credit checks are carried out. Your insolvency practitioner can also advise on any employment implications before you enter an IVA.
Frequently Asked Questions
Does an IVA ruin your credit score permanently? No. An IVA stays on your credit file for six years from the start date, then drops off automatically. After that, you can rebuild your credit score through responsible borrowing, and many people reach a "good" credit rating within two to three years of the IVA clearing. It is not permanent damage.
Can I get a mortgage while I have an IVA on my credit file? It is extremely difficult. Almost all mainstream mortgage lenders will decline applications while an IVA is active or still on your credit file. Specialist adverse credit mortgage lenders exist, but they typically require a substantial deposit and charge higher interest rates. Most financial advisers recommend waiting until the IVA has cleared from your file and then rebuilding credit before applying for a mortgage.
What is the difference between an IVA and bankruptcy on your credit file? Both appear on your credit file for six years. Bankruptcy is generally considered more severe and may carry additional restrictions, such as limits on certain employment roles. An IVA allows you to retain more assets, including your home in some circumstances, whereas bankruptcy typically results in the sale of non-essential assets. Both have a similarly severe impact on your credit score during the six-year period.
Can an IVA be removed from your credit file early? Only if the information is inaccurate. A legitimate IVA that was correctly entered and has not yet reached its six-year limit cannot be removed early. Any company that claims to remove accurate IVA entries before the six-year period ends is either misleading you or operating outside the law.
Should I check my credit file after my IVA completes? Yes, and promptly. Check your credit report with Experian, Equifax and TransUnion after your IVA completes to confirm the IVA is marked as satisfied and that all included debts are shown as settled. Errors at this stage can delay your credit rebuilding significantly, and they are much easier to resolve promptly than years later.