Having a CCJ or IVA on your record does not automatically rule out car finance. Check what you could be eligible for in minutes.
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It may be possible, yes. A County Court Judgment (CCJ) on your credit file does not automatically mean you will be turned down for car finance. Some lenders specialise in working with people who have adverse credit markers, including CCJs.
What matters to lenders is the detail. They will typically look at how old the CCJ is, whether it has been satisfied (paid off), how much it was for, and whether there is more than one. A satisfied CCJ that is several years old is generally viewed more favourably than a recent or unsatisfied one.
CCJs stay on your credit file for six years from the date they were registered, regardless of whether you pay them. After six years, they drop off automatically. If you satisfy a CCJ within one month of the judgment, it is removed from the register entirely.
A soft search lets you check what you could be eligible for without adding another mark to your credit file. All applications are subject to status and affordability.
Getting car finance while in an Individual Voluntary Arrangement (IVA) is more difficult, but it may not be impossible. The main challenge is that most IVAs include a clause restricting you from taking on new credit above a certain amount without your Insolvency Practitioner's (IP's) permission.
If your IVA is still active, you would typically need your IP's written approval before applying for car finance. Some specialist lenders do work with people in active IVAs, but the options may be more limited and the rates higher. Both HP and PCP may be available, though the range of products offered is typically narrower than for applicants without an IVA.
Once your IVA is completed, your options usually improve. An IVA stays on your credit file for six years from the date it started, so the further you are past completion, the less impact it is likely to have on new applications.
If your IVA has been completed and you have a completion certificate, mention this when you apply. It shows lenders that you have managed your debts through to resolution.
Bankruptcy is the most serious adverse credit marker, but it does not mean car finance is permanently off the table. Once you have been discharged from bankruptcy (usually after 12 months), you are legally allowed to obtain credit, although you may be required to disclose your bankruptcy to the lender.
In practice, most mainstream lenders will decline applications from recently discharged bankrupts. However, some specialist lenders may consider your application, particularly if a few years have passed and you can demonstrate stable income and improved financial behaviour.
Bankruptcy stays on your credit file for six years from the date of the bankruptcy order. After that, it drops off, and its impact on your ability to borrow reduces significantly.
Both CCJs and IVAs remain on your credit file for six years. The clock starts from different points though. For a CCJ, it is six years from the date the judgment was registered. For an IVA, it is six years from the date the arrangement started, not from when it was completed.
As time passes, the impact on your ability to get credit generally reduces. A CCJ or IVA from five years ago is likely to be viewed less seriously than one from last year. Some lenders have specific time-based criteria, for example only considering applicants whose CCJ is more than two or three years old.
If you are close to the six-year mark, it may be worth waiting for the marker to drop off before applying. This could significantly improve the terms you are offered. If you cannot wait, a soft search lets you check your options without any risk to your credit score.
If you have a CCJ, satisfying it (paying it off in full) is one of the most helpful things you can do. The CCJ will still show on your credit file, but it will be marked as satisfied, which lenders view more positively.
Keeping all your other financial commitments up to date is important. Consistent, on-time payments on bills, rent, and any existing credit show lenders that you are managing your finances responsibly now, regardless of what happened in the past.
A deposit is not required on all agreements, but putting one down could improve your chances and reduce the total amount you need to borrow. A guarantor could also help strengthen your application.
Rather than applying to a direct lender yourself, using a broker means your application can be matched against a panel of lenders, including those who specialise in adverse credit. This avoids making multiple applications and the hard searches that come with them.
If you also have a poor or bad credit score alongside a CCJ or IVA, our bad credit car finance page has additional tips. If you receive benefits, some lenders may still consider your application subject to affordability.
Wondering how much car finance you can get on your salary? Use our calculator to estimate monthly payments based on the car price, your credit grade and preferred term length.
Check your eligibility for both HP and PCP deals in minutes (Representative 19.8% APR) - with no impact on your credit score. Our partner uses a soft search to give you a quote. If you proceed, a hard search will be conducted which may impact your credit score.
Check Your EligibilityNot the right fit? Check out the other car finance options we cover.
If you are already paying for a car on finance, make sure you are not overpaying on your car insurance too. Comparing quotes from multiple insurers is the easiest way to check you are getting a competitive deal.
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Common questions about car finance with ccj or iva.
Not necessarily. Some lenders consider applicants with CCJs, particularly if the CCJ is older and has been satisfied. The further in the past it is, the less impact it tends to have. A soft search lets you check your options with no impact on your credit score.
Usually, yes. Most IVAs include a clause that restricts you from taking on new credit above a certain amount without your Insolvency Practitioner's permission. Check your IVA terms and speak to your IP before applying for car finance.
An IVA stays on your credit file for six years from the date it started, not from when it was completed. Once it drops off your file, its impact on new applications reduces significantly. The further past completion you are, the better your chances.
Not completely. Once discharged from bankruptcy, you are legally allowed to obtain credit. Some specialist lenders consider applicants with a bankruptcy in their history, particularly if a few years have passed and you can demonstrate stable income. Subject to status and affordability.
A satisfied CCJ is viewed more positively by lenders than an unsatisfied one. It still shows on your credit file for six years, but the fact that it has been paid off demonstrates that you resolved the debt. Some lenders specifically distinguish between satisfied and unsatisfied CCJs in their criteria.
It depends on your situation. If your CCJ is close to the six-year mark, waiting for it to drop off could significantly improve the terms you are offered. If you need a car sooner, a soft search lets you check what options are available now with no risk to your credit score.
It may be possible. Many car finance options are available with no deposit, even for applicants with adverse credit markers. However, putting down a deposit could improve your chances and reduce your monthly payments. Subject to status and affordability.
A default is different from a CCJ. A default is recorded when you fall significantly behind on a payment, while a CCJ is a court order to repay a debt. Both affect your credit file, but a CCJ is generally viewed as more serious. Some lenders are more flexible about defaults than CCJs. Both stay on your file for six years.
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