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Can I get a car on finance with an IVA, CCJ or bad credit?

Can I get a car on finance with an IVA, CCJ or bad credit?

Having a poor credit history or suffering financial penalties like CCJs, IVAs or bankruptcy can affect your chances of getting car finance, but it isn’t always a complete barrier to getting the car you want.

And while looking at your credit report isn’t as exciting as looking for your new car, by knowing your financial circumstances, you’ll be in a much better position when it comes to financing your car.

Car finance and your credit score

The purpose of a credit score is generally to give lenders an idea of how much risk you are as a borrower. A few factors can contribute to a bad credit rating – missed repayments, applying and being declined for loans, County Court Judgments (CCJs) and bankruptcy claims.

However, this isn’t the only thing lenders look at when you apply for finance. Criteria can also include the size of the loan, the length of term and affordability. So, if you have a bad credit rating, it doesn’t mean your application will automatically be rejected.

Saying that, if you want a better chance of being accepted for finance as well as securing better interest rates, it’s a good idea to take your time to improve your score. How to do this will vary depending on your circumstances, but paying off loans, ensuring all payments are made on time and registering on the electoral roll can all help better your score.

If you need access to a car straight away, though, don’t let a bad credit score hold you back, as we can work with you to help.

Can I get car finance with an IVA?

An individual voluntary arrangement (IVA) is a legal agreement between you and your creditors to pay back your debt over a period of time.

The good news is, an IVA shows you have taken steps to resolve your credit issues. A car is generally can be seen as a necessity for work too, so for those wanting to get out of debt, it’s often deemed important.

If you’re on an IVA, you will generally have to ask for permission if you’re looking to get credit of more than £500. That first step is important, as otherwise, you could be breaching the legal terms of your agreement.

Man thinking

It’s not impossible to get car finance when you’re in an IVA, but it is more difficult, so it’s best to approach a lender that has experience helping those with bad credit.

At Hippo, we have several years’ experience in helping customers with diverse credit backgrounds, such as IVAs, get the car they want. We believe in responsible lending so will ensure that whatever your situation, we’ll work with your best interests in mind to get affordable finance for you.

How do I buy a car with an IVA?

When you decided to use the option of an IVA, you were assigned an Insolvency Practitioner (IP) whose job it is to help you manage your debt payments and any other financial agreements you need while you’re paying your IVA.

If you’re going to take out a car loan, you’ll need written permission from your IP. There are two things you need to prove:

  1. Affordabilty – your IP will need to see proof that you can afford to pay your loan on top of your debts and other monthly outgoings, which will require you to have an in-depth knowledge of your finances.
  2. Need – if you can show that you need a car your IP is more likely to agree. For example, if you have kids to pick up from school or it’s cheaper than commuting to work.

If your IP can see that you can afford a car finance agreement and it’ll improve your lifestyle they’re more likely to approve the loan.

I’ve got approval, what now?

If you’ve got approval, great news! You need to consider that not all lenders will accept you as they don’t want to deal with people that have IVAs as they may be too risky. However, some lenders consider or specialise in helping people with IVAs. You can see if you’re preapproved by one of our specialist lenders by clicking the button below.

Check your eligibility

Can I get car finance with a CCJ?

A County Court Judgement (CCJ) registered against your name will impact your credit score, and may affect your ability to take out loans or credit cards.

While the chances are it may limit your options, it’s still possible for you to get car finance, though.

The reason a CCJ affects the way lenders are prepared to finance your car is because it shows that historically you have failed to pay back money that you owe. A CCJ will stay on your credit report for six years, however, whether it’s resolved or unresolved can affect the decision made when you apply for further borrowing.

Your options may be that you need to take finance at a higher interest rate. Or you may not qualify for certain deals such as zero deposit leasing. But, if you need a car, don’t let a CCJ put you off.

At Hippo, we know you don’t want your credit score to affect something that can be so important in your day-to-day life, so our team will work with you to get the car you need. We only ever work with responsible lenders who’ll look at your affordability, and we’ll always do the best we can to help you get on the road as quickly and as hassle-free as possible.

How to improve you chance of getting car finance

There are a few things you can do if you think your credit history will impact your chances of getting car finance.

Take a look at your credit file

The first step to understanding the likelihood of getting accepted for car finance is to look at your credit file. This will help you see what the lenders will be looking at when you apply. It’s a good opportunity for you at this point to flag up anything that may be wrong on your file and ask for it to be corrected.

How do I check my credit report before applying for a car loan?

Researching on Laptop

Improve your credit score

Having a bad credit score is one of the main reasons that car finance could be rejected, so if you take a few steps to improve it beforehand, you’ll be in a better position when it comes to your application.

  • Get up to date on any missed payments that are showing – from household bills to loans and credit cards
  • If you do have defaults or CCJs, speak to your creditors to ensure that you have an agreed affordable plan in place to pay them off
  • Register on the electoral roll. This is the easiest and faster way to boost your credit score as it will confirm your identity with the lenders. It can be done either by post or online and takes minutes
  • Avoid making multiple attempts to apply for credit. The irony is when you apply for credit, a lender will carry out a hard search on your report, which can negatively affect your credit score. One important reason, at Hippo we only ever carry out soft searches which won’t impact your score
  • Pay down your balances. Even going over your credit card limit by a few pounds can affect your score, so try and pay down the balance as much as you can afford to

Save for a deposit

At Hippo, we offer no deposit finance deals. However, if you can save before you apply for car finance, a bigger deposit will increase your chances of getting a better rate and give you a better chance of being accepted.

Piggy bank

Consider a guarantor loan

As they will be liable for payments if you can’t make them, a guarantor will pose less risk to a lender. This can reduce your interest rate and help you get a better deal than you may be eligible for on your own.

What is a guarantor loan and can I use one to finance a car?

How to get car finance with bad credit, an IVA or CCJ

We understand that having access to a car is important and that a low credit score can cause worry when it comes to car finance. It may not be ideal, but it’s far more common than you think. Every day we speak to customers with a range of financial needs.

It’s important for us to ensure we do the right thing by you, finding you affordable solutions when it comes to finance, so you can have the car you want.

Check your eligibility

We’ll only ever use a soft search when looking for finance, so your credit score isn’t impacted. And we only ever deal with responsible lenders who have your best interests at heart.

We believe it’s important that everyone has a chance to drive away with their own car, no matter what their circumstances.

We can put you in touch with one of our dedicated account managers who specialise in helping customers with bad credit to give you support, straightforward advice and get you the best car finance deal possible.

And it’s as simple as a few clicks. Just get preapproved.

Get an instant decision

Representative Example of Credit

We expect more than 51% of our customers to achieve this rate.

Loan Amount Total Cost of Credit Representative APR 60 Monthly Payments Deposit Amount Loan Term Total Amount Payable
£7,500 £3831 19.1% APR £188.85 £0 60 Months £11,331

All offers are subject to change at any time, you must be 18 or over and finance is subject to status, vehicle availability and terms and conditions apply. We can introduce you to a limited number of finance companies, a commission may be received. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could affect your credit rating and make it more difficult to obtain credit in the future. All prices correct at time of publication.

We purchase a wide variety of vehicles from all over the country to ensure the best quality and value for our customers, all of our cars go through a thorough inspection process and if they do not meet our standards we do not sell them. We endeavour to inform our customers (where possible) the provenance of the vehicle they are buying and as such we will always inform you if the vehicle has previously been either an ex fleet or hire car. Should your vehicle be an ex hire/fleet car please do not be concerned as we would never value this vehicle differently when you come to part exchange it and there is no difference to the CAP valuation either.

You should try and estimate the distance you will travel as accurately as possible to try and avoid excess mileage charges at the end of your contract.

All pictures and/or photos and car descriptions on this site are for illustration and reference purposes only and are not necessarily the vehicle on offer. All offers are subject to change at any time and are subject to finance approval and vehicle availability. All prices correct at time of publication. E & OE.

Hippo Vehicle Solutions t/a Hippo Motor Finance is authorised and regulated by the Financial Conduct Authority. FRN 658076. We are a Credit Broker not a Lender and can introduce you to a limited number of lenders. Subject to status and to UK residents only (excl. the Channel Islands). Individuals must be 18 or over. Guarantees and indemnities may be required. We typically receive a fixed commission calculated by reference to the vehicle model, product or amount you borrow, for introducing you to a lender but this does not affect the interest charged on the agreement, all of which are set by the lender. Images for illustrative purposes only. Hippo Vehicle Solutions t/a Hippo Motor Finance is an Appointed Representative of AutoProtect (MBI) Limited for insurance distribution purposes. AutoProtect (MBI) Limited is authorised and regulated by the Financial Conduct Authority. Its firm reference number is 312143. You can check this at

We endeavour to ensure that all information including the specifications and finance availability are accurate. Whilst we make every effort to display correct information we are aware that errors may occur occasionally. We are not able, therefore, to guarantee the accuracy of all information especially when given to us by third parties. If you do require clarification of some information you have seen on our website, please email us at . This does not affect your statutory rights.

We are a broker not a lender and our registered office is Unit 26 Trident Park, Trident Way, Blackburn, BB13NU.