If you’ve had an Individual Voluntary Arrangement (IVA), you may be wondering whether it’s possible to get a credit card again. This is a common question, especially for people looking to rebuild their finances and move forward after dealing with debt.
The short answer is yes, it can be possible, but when and how you apply makes a big difference.
How an IVA Affects Your Credit File
An IVA is a formal agreement to repay part of what you owe over a set period of time. Once it begins, it is recorded on your credit file and remains there for six years from the start date.
During this time, lenders can see that you’ve previously had difficulty managing credit. This makes you a higher-risk applicant and can limit the types of credit available to you, especially in the early stages.
Even if you complete your IVA early, it will still remain on your credit file until the six-year period ends.
Can You Get a Credit Card During an IVA?
In most cases, the answer is no.
While you’re in an IVA, you’re usually not allowed to borrow more than £500 without written permission from your Insolvency Practitioner. This includes applying for a credit card.
Applying for credit without approval could breach the terms of your IVA and potentially put the arrangement at risk. For this reason, most people are advised not to apply for any form of credit while their IVA is active.
What Happens Once Your IVA Is Completed?
Once you’ve successfully completed your IVA, you’ll receive a Certificate of Completion confirming that you’ve met all your obligations.
At this stage:
- The IVA will be marked as completed on your credit file
- It will still remain visible until the six-year point from when it began
- Lenders may still view you as higher risk, but your options start to improve
While you may not qualify for mainstream credit straight away, some lenders may consider you for limited products designed for people rebuilding their credit.
Getting a Credit Card After an IVA
After your IVA ends, you may be able to apply for a credit card designed for people with a poor or limited credit history. These cards usually come with:
- Lower credit limits
- Higher interest rates
- Stricter eligibility checks
Used correctly, they can help you rebuild your credit profile over time. The key is to use them responsibly, spending small amounts and paying the balance in full each month.
How to Improve Your Chances of Approval
If you’re looking to rebuild your credit after an IVA, these steps can help:
- Check your credit report regularly and make sure all information is accurate
- Avoid making multiple credit applications in a short period
- Pay all bills on time, including mobile and utility bills
- Keep balances low and manage credit sensibly
Good financial habits over time can make a real difference to how lenders view you.
When Does It Get Easier?
Once the six-year period has passed and the IVA drops off your credit file, your borrowing options typically improve. Lenders can no longer see the IVA, which often makes it easier to access more competitive financial products.
Having an IVA doesn’t mean you’ll never be able to get a credit card again. It simply means rebuilding your credit will take time and patience. By understanding your position and making careful financial choices, you can gradually improve your credit profile and move forward with confidence.
If you’d like guidance on your options or support with managing debt, My Debt Plan is here to help you take the next step.
