IVA
Can I get a credit card during an IVA?
While your IVA is active, taking on new credit is tightly restricted, and a credit card almost always falls inside those rules. Here's how the £500 limit works, when supervisor permission is needed, and what changes when your IVA completes.
- £500 limit
- Supervisor's consent
Written and reviewed by the AfterMy team · Last reviewed October 2026
Quick answerUsually no, and usually not worth it. While your IVA is active you can't take on more than £500 of credit without your supervisor's written permission, and lenders can see the IVA on your file. Once your IVA completes, the restriction lifts. Come back when your IVA has finished.
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The short version
While you're in an IVA, new credit is restricted by the terms you agreed to. The rule is simple: you can't obtain more than £500 of credit without the written consent of your IVA supervisor.
A credit card almost always counts, even one with a modest limit, because the available limit, not what you spend, is the credit being extended.
Your IVA is recorded on your credit file and on the public Individual Insolvency Register while it's active. Lenders see that and may decline. Those who consider someone mid-IVA tend to charge very high rates, and taking on costly credit while you're working to clear debt is the opposite of what your IVA is for.
The £500 rule, explained properly
This isn't AfterMy's rule. It's written into the standard terms of every protocol IVA.
The official wording is that during the arrangement you must not obtain any credit greater than £500 without your supervisor's prior written approval. There are sensible exceptions built in: utilities, insurance, and other contractual payments already accounted for in your budget don't count.
- It's the total credit, not the monthly cost.
- It applies to all borrowing, including from friends and family.
- A credit card's limit is the figure that matters, not what you spend. Check with your supervisor first.
What happens if you take credit without permission
Going over £500 without consent is a breach of your IVA. That doesn't automatically end it.
Your insolvency practitioner may issue a breach notice explaining what's gone wrong and giving you a chance to put it right. But if it isn't resolved, your insolvency practitioner can put it to your creditors, who could vote to terminate the arrangement, which would undo the protection you've built.
It's simply not a risk worth taking for a credit card.
"But I want to start rebuilding my credit"
If this is why you're asking, it's a good instinct. The thing to know is that getting a card now won't speed up your recovery.
While the IVA is on your file, new credit can't lift your profile much, and the risk and cost outweigh the benefit. What genuinely helps during an IVA is free and low-risk: stay on the electoral roll, keep every bill paid on time, and keep your IVA payments perfect so you reach completion cleanly.
That on-time history is the foundation lenders look at afterwards.
What changes when your IVA completes
When your IVA completes, you'll get a Certificate of Completion, and the £500 restriction ends. Your file still carries the IVA marker until six years from the start date (or your completion date if the arrangement ran longer). Come back when your IVA has finished.
Guides
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Questions
Frequently asked questions
Does a credit card with a low limit count during an IVA?
The limit counts total credit, not the monthly payment; check with your supervisor first. Lenders can see the IVA on your file while it's active.
Will my IVA supervisor ever approve a credit card?
It's rare. Supervisors may approve essential credit, like replacing a car you need for work, but a general credit card is unlikely to be approved.
Does a prepaid card count as credit?
No. A prepaid card isn't credit, so it doesn't fall under the £500 rule, but it also doesn't help rebuild your credit file.
What changes when my IVA completes?
Once you have your Certificate of Completion the £500 restriction no longer applies. Come back when your IVA has finished.
Will applying hurt my credit score during an IVA?
Each full application leaves a hard search on your file, and a run of hard searches can set your progress back.
Come back when your IVA has finished.
While your IVA is running, the rules above apply.