How IVA Affects Credit Cards

Once you enter in an IVA, the credit cards which are part of the agreement will be frozen. This means that you will not be able to make any new purchases using the cards. Since the IVA process typically lasts for five years, you may want to consider alternatives to use during that time.

It is highly unlikely that any creditor which is part of your IVA will want to extend to you any additional lines of credit during this period. Therefore, it would be best to seek out financial institutions which are not a part of your IVA. It may not be easy to qualify for unsecured credit cards during this time, but fortunately, there are a number of secured credit cards available to help you get back on track.

The best credit card after bankruptcy or an IVA will be ones which are secured. Since they are secured, it will help you resist the temptation to overspend. If you do overspend, you will have the option of forfeiting the security deposit to pay the debt. The best credit cards after bankruptcy will also come with reasonable fees and terms. Just because you have a bankruptcy or an IVA on your record, it doesn’t mean you should have to pay excessive annual fees. Last but not least, whatever card you decide to go with, it’s important to use it in a responsible manner. After all, the last thing you want is another IVA in future.