If you are part-way through your IVA (Individual Voluntary Arrangement), and you realise that you are going to need to borrow some money, the question may spring to mind – will lenders conduct a credit check during an IVA?

First of all, it’s important to note that if you’re on an IVA, you won’t be allowed to access any further credit without permission from your Insolvency Practitioner (IP).

Plus, if you do obtain their permission, there’s no guarantee you’ll actually be able to get credit. Lenders will conduct a credit check when you apply for credit, to establish whether or not you’re likely to be able to repay the money you would owe them.

They’d normally do this when anyone applies for credit, but when they conduct a credit check during an IVA, the IVA will show up on your credit report, which will show them that you have had to enter a debt solution – a form of insolvency, in fact – to tackle your unmanageable debt.

There’s a good chance they won’t lend you anything, since being on an IVA means you’ve not repaid your previous debts as you agreed.