How did I qualify for a credit card from a high street bank?!

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A couple of us have been chatting about this today - and we'd really like to hear from people who've been offered credit in IVAs. It shoudn't happen, but we know it does. However, it often gets corrected upon final credit check, especially when some companies offer loans or cards on a blanket basis to a list they've bought.

I tweeted Lloyds last night to ask them how they thought it happened - not in a name and shame way, because i bet it's an admin error somewhere - but it would be interesting to discuss.

We do know of one person in an IVA who got a loan and a card (but on advice turned them in) so the system certainly isn't foolproof.

Jen, you are doing all the right things to give your credit rating a head start once you finish your IVA and get your Certificate of Completion. Being on the Electoral register and having commitments that you've regularly paid will all help. As will being in the same address for a while. However, don't hold your breath to get a mortgage - at least not at prime rates.

A few years ago - before the banking crisis - I knew lenders who were saying "Ah, yes, people in IVAs - they've spent five years demonstrating they can manage their money and meet their commitments - we'll lend to them". Sadly, that never came to pass.

We have many clients who are home-owners and who, as part of their IVA, need to release equity in month 54 of their arrangement. So, we know that, since the credit-crunch, there are very few lenders who will make secured loans or remortgages to people in IVAs. We know of five. The group of specialised lenders who will consider first time buyers after an insolvency is even smaller - but there are a few.

My colleague who specialises in this area thinks that sentiment will have changed in three years and that, then, you'll have a good chance of a mortgage - that a track record of five years IVA payments will, by then, be helpful, as will four years renting at the same property, proof of an ongoing credit record, etc.

And, of course, having got used to living without the amount you pay into your IVA every month you should be in a position to carry on putting goodly amounts aside every month to build a substantial deposit.

I dont think I was part of a bought list - I have been a customer of their's for nearly five years (I set up my first current account with them at the start of my IVA). I now have two current accounts and three savings accounts with them. Is it possible that due to this - and because I have had no issues since being with them I was accepted?

I did actually take it all the way through believing, like you said, that on a final check they would say no but it did go all the way through.

Working for a financial company myself I find it difficult to believe it would be an admin error. The company I work for is a non standard lender and we have exceedingly strict controls. I would assume - or expect - a High street bank to be even tighter in terms of credit checks.

Interestingly following that I tried to apply for an overdraft just to see what would happen. It got declined!