1. What is the position at the end of a Voluntary Arrangement?
2. How does an IVA affect my credit rating in the future?
3. Will I be able to obtain a credit card again?
4. How do I get my credit report?
5. What information do I have to give to the credit bureaus to get a copy of my credit report?
6. What do credit bureaus do?
7. What's the worst thing that can appear on my credit report?
8. How long does information stay on my credit report?
9. I have bad credit now. Do I have to wait 7 to 10 years before I can get a loan?
10. I got my credit report. What do I do now?
11. I found errors on my credit report. What do I do now?
12. What if I found more than one error?
13. How do I correct negative information on my credit report?
14. Why is challenging a credit entry effective?
15. The negative item I challenged has been confirmed by the lender. What should I do now?
16. All my attempts to have an item removed have failed because the lender keeps verifying them. What do I do next?
17. How does a lender decide that I'm credit worthy?
18. How does a lender qualify me for credit?
19. Should I apply for as many credit cards as possible?
20. What do I do if I'm turned down for credit?
21. What can lenders do if I don't pay them?
22. How do I get collectors off my back?
23. Should I use a credit repair agency to fix my credit?

1. What is the position at the end of a Voluntary Arrangement?
   Answer: All UK Insolvency Helpline representative firms issue customers with a letter of completion and a certificate of compliance stating that the Voluntary Arrangement has been successfully finalised. This can then be shown by the Debtor to any third parties who may enquire concerning the Debtor's credit-worthiness.

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2. How does an IVA affect my credit rating in the future?
   Answer: You are not instructed further credit whilst you are in an IVA because you are working to a strict budget. You are free to apply for credit after your IVA is completed. To ensure your file is updated send a copy of your completion letter (from your supervisor) to both credit reference agencies. All of of your debts covered by the IVA should be marked as satisfied by each original creditor when your IVA is completed.

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3. Will I be able to obtain a credit card again? 
   Answer: The best thing is to send for your file and have a look at it. You can get a very helpful booklet from your local trading standards office called 'No credit?' this explains all about the entries and how to have yourself 'disassociated' from relatives in the same house.

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4. How do I get my credit report?
   Answer: You can contact the two main credit bureaus and ask them to send you your credit report. The two credit bureaus are:
   • Experian Consumer Help Service
     PO Box 8000
     Nottingham
     NG1 5GX
     Tel: 0115 941 0888
     www.uk.experian.com
     
     
   • Equifax Plc
     Credit Advice Centre
     PO Box 1140
     Bradford
     BD1 5US
     Tel: 08705 143700
     www.equifax.co.uk
     
     
     The cost - £2.00 

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5. What information do I have to give to the credit bureaus to get a copy of my credit report?
   Answer: You have to provide the following: your full name, DOB, your current address, your previous addresses over the past six years, and your signature

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6. What do credit bureaus do? 
   Answer: Credit bureaus have huge databases on the credit histories of consumers. This information is gathered and given to the credit bureaus from creditors that have extended you credit in the past (for example, landlords, credit card companies, the HM Inland Revenue, department stores and banks). Your credit history contains information that creditors use to evaluate and determine your ability and willingness to repay credit. Typically, credit bureaus give the following information: Your open accounts, credit limits, current balances, number of late payments, collection actions, tax liens, and whether you own your own home or not.

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7. What's the worst thing that can appear on my credit report?
   Answer: There are basically eight things that look the worst on your credit report. This is difficult to state because lenders assess information differently. Some common examples are: multiple searches, late payments, defaults (paid/unpaid), CCJ's, bankruptcies and repossession orders.

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8. How long does information stay on my credit report?
   Answer: All negative information stays on your credit file for anywhere from 1-6 years.

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9. I have bad credit now. Do I have to wait 7 to 10 years before I can get a loan?
   Answer: On the practical level you can have an A-rated credit report within 2 years of even bankruptcy. Why? Because lenders are much more interested in your present circumstances than what happened to you 3 to 10 years ago. Rebuilding your credit can be done rather quickly through a systematic plan, and a little perseverance. Keep in mind that positive credit information stays on your credit report forever. The credit reference agencies only hold information for six years, whether positive or negative.

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10. I got my credit report. What do I do now?
    Answer: Go through it and look for negative items, such as: Past due history, multiple searches, and public records (bankruptcies, county court judgments). If any of these are inaccurate, dispute them directly with the credit bureau.

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11. I found errors on my credit report. What do I do now?
    Answer: All incorrect or unfair credit information has to be eliminated from your file. All consumers have the right to challenge the accuracy of their credit report. Once you challenge the accuracy of a particular item, the credit bureau must investigate that item as soon as possible. If the credit bureau finds the item to be incorrect, or cannot confirm or deny it, it must be removed immediately from your credit file.

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12. What if I found more than one error?
    Answer: It's a legal obligation for the credit reference agencies to deal with every query raised. You should challenge each error separately, in writing only. Don't pick up the phone and call the credit bureau. Wait until one item is resolved before challenging another. If you challenge all of the items, the credit bureau. You have to patient when dealing with the credit bureaus. Deal with each item one at a time.

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13. How do I correct negative information on my credit report?
    Answer: Challenging the accuracy or completeness of an item is the best way to have a negative item removed. It is best if you can include documentation that supports your challenge. If negative information is outdated, you again need to bring this to the attention of the credit bureau in writing. If the credit bureau fails to verify the items you challenged within a reasonable time (about a month) from the date your challenge was received then you should seek legal advice.

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14. Why is challenging a credit entry effective?
    Answer: There are three reasons for this. First, the credit bureaus were too busy during a particular period that they could not re-verify the item you challenged within the time limit, and therefore they removed it. Second, because of human error correct information was inadvertently deleted. Third, after two or three years a closed or inactive file is often stored offsite by your old lenders, and so they cannot access it, and as a result they do not respond to the credit bureau because it is too much work.

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15. The negative item I challenged has been confirmed by the lender. What should I do now?
    Answer: It is normal that some of your challenged items will be confirmed by the lender, and they will not be removed from your credit file. Wait 1 to 6 months and try again, with a written challenge.

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16. All my attempts to have an item removed have failed because the lender keeps verifying them. What do I do next?
    Answer: If this is the case, you need to talk directly to the lender and see if you can convince him to come to a settlement. If you agree to pay him off, make sure you get in writing that he will remove any negative information from your credit file. Once you have this in writing, only then pay him. Otherwise, he may take your money and do nothing.

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17. How does a lender decide that I'm credit worthy?
    Answer: When you apply for credit by filling out an application, you normally give permission to the lender to get your credit report from a credit bureau. Lenders use this credit report to work a short-term debt-to-income ratio, where they calculate your present short-term debt payments (excluding your mortgage), and divide the total by your total annual income. Lenders will refuse you credit if your short-term debt is more than 20% of your annual income. The second method lenders use is to add up your monthly bills (not including rent or mortgage and utilities) and divide the total by your gross income (before taxes). With this method, lenders are looking for a ratio of under 35%.

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18. How does a lender qualify me for credit?
    Answer: Most lenders look at the number of years you have worked at your present job, the kind of work you do (the worst to best being: manual work, clerical, self-employed, managerial, professional), the number and nature of negative entries in your credit report, the amount of credit you currently have, savings and or current accounts with the lender, length of time at your present address, is the telephone in your own name, do you own your home.

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19. Should I apply for as many credit cards as possible?
    Answer: No, you should not, because it greatly decreases your chances of getting approved. Most lenders will look at your total unused credit on all your cards. If you were to max out all your cards, would you be able to pay it all off on the income you presently make? Lenders normally assume that you would not be able to.

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20. What do I do if I'm turned down for credit?
    Answer: The lender must provide you the specific reasons why you were rejected, and the name and address of the credit bureau that provided your credit report. You can appeal your rejection by sending a letter to the lender explaining why you are a better credit risk than your credit report indicates. But it is best to rebuild your credit before applying for credit again.

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21. What can lenders do if I don't pay them? 
    Answer: Not paying your bills is not a crime (except for your taxes, of course). In the case of a secured loan, the lender can repossess on the property that secures the loan. Unsecured lenders can get a county-court judgments. If you have no property of any real value, there is very little a lender can do. If you work or not and no real assets, there is virtually nothing that a lender can do. And if your debt is small, it may be more expensive for the lender to attempt to collect. In most cases, a lender will stop short of legal action, and write off your debt.

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22. How do I get collectors off my back?
    Answer: There is a limit to what collectors can do. If collectors are being deceptive or harassing you, you can sue them in civil court. A collector cannot contact you at your place of employment. A collector must not make false or misleading statements, or make abusive remarks, or harass you. Nor can a collector call your family or friends to collect your debt. If collectors are harassing you, you should immediately write an official complaints letter asking them to stop any further communication with you. Send this letter by registered mail or deliver it by courier. They must stop contacting you with the exception of a letter stating that their collection efforts have ended, or the collection agency intends to take specific action against you (that is, sue you). Generally, collection agencies do not sue.

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23. Should I use a credit repair agency to fix my credit?
    Answer: No. They often use many illegal methods that will make things worse for you. Be wary especially of agencies that tell you that can remove county court judgements (CCJs). This is not possible. It is better that you handle your credit problems yourself, because only you can do a good job of repairing your credit.