Car Finance with CCJ, Defaults or IVA

We explain everything you need to know about trying to get car finance with a CCJ, Defaults or an IVA.

The cost of living crisis has made it increasingly more difficult for the average family in the UK to live within their means, with many having to cut back on their weekly shopping, energy allowance, and car usage. 

The price of daily essentials has increased due to inflation, meaning everyday items such as milk and bread are more expensive than before, along with the gas and electricity used to keep us warm in our homes.

Not only have our energy bills gone up, but other monthly bills and loan repayments are either the same or increasing too. That means we all have a lot less disposable income than before.

Do you have a car on finance and would like to reduce your monthly repayments? Sign up with Car Credible today; we could help you save money on your deal.

Check your deal now

While the hope is that we will start to see all of these essential items come down in price, millions of people have struggled to make it to their next payday.

As a result, people have fallen behind in making monthly repayments on things like cars and mobile phones, meaning they're not only at risk of their items getting repossessed which would affect their quality of life but also their credit scores getting impacted and unable to take out future loans.

Can I get car finance with CCJ, Defaults or IVA?

Unfortunately for some, it's too late to be offered any assistance by the government or lenders, and they're already in debt where they weren't able to repay their lenders.

However, hope is not lost if you are in a position where you want or need to take out a new financial loan. Some lenders specifically help those that have missed payments in the past, had a CCJ or entered an IVA.

At Car Credible, we work with a panel of lenders which means there may be options available for you. We work with you to help find you a loan that suits your need and budget so you can get into the car of your dreams.

Of course, it is more challenging to find lenders willing you work with people with a CCJ, default, or IVA but providing you are honest with the personal and financial information you provide, it may be easier than you think.

What is a CCJ?

County Court Judgement, or CCJ, can be granted against you in a court of law in England, Northern Ireland and Wales if you fail to make repayments to your lender on time.

You will receive a deadline of when you need to make the repayments and detail exactly how you intend to make them. 


A CCJ will show on your credit history and will be visible there for six years, regardless of whether or not you were able to make the repayments. Therefore, it increases your chances of being refused for future loans.

What is a Default?

A default is a notice that has been added to your credit file to indicate that you missed or defaulted on making your repayments on time. It generally gets added to your file after three to six months of not making your repayments.

The notice should indicate the payments you have missed, the date you need to make the repayments and the consequences you will face if you fail to make the repayments by the agreed date.

If after getting issued the default, you are still unable to make the repayments, your account will fall into default.

What is an IVA?

An Individual Voluntary Arrangement (IVA) is an agreement you make with your lender if you are struggling to make the repayments, so you can still make them but at a more affordable rate.

If you're currently in an IVA, finding a new car finance agreement will be challenging because you already have conditions from a previous agreement that you are still paying off.

It's therefore going to be more difficult for you to be approved, and if you desperately need car finance now, you will need to get permission from your Insolvency Practitioner before making a new application.

Like with a CCJ, if you previously had an IVA that you've gotten out of, it will still show on your credit history for six years, therefore making it increasingly difficult to take out finance until it has disappeared.

Check your deal now

Bad credit with a CCJ

If you have bad credit, regardless of whether you have a CCJ, it is possible to get a car on finance. Car Credible works with a panel of lenders to help find you the best deal to suit your circumstance.

While having bad credit or a CCJ is never ideal, there are ways that we can help manage your credit history to enable you to get into a suitable deal for both you and the lender.

It can be a struggle living with debt and needing a car for work to help you repay those debts. That's why we will always do our best to accommodate everyone wishing to take out car finance to help improve your day-to-day life.


Can I get car finance with bad credit?

There are lenders that specialise in helping people with bad credit so they have a better chance of getting approved for car finance. You should research the lenders that help with bad credit before applying, as every application will appear on your credit history and any rejections could impact future lenders approving your loan request.

What's the difference between credit score and credit history?

Credit history is the credit you have built up over time and is typically visible on your credit file for the past six years. A credit score is created from your credit history and the current loans you are repaying. The higher the credit score and the better the credit history, the better your chance of being approved for a new loan.

Can I reapply for car finance if rejected?

If you're rejected for car finance, you can reapply for car finance with a different lender, but it's advised that you wait a little while to do so. Try to find out why you were rejected, and apply for a new loan with a lender that accommodates the rejection reason. For example, if you have bad credit, find a lender that works with people with bad credit. Or if you are between jobs but have a good credit history, work with a lender to prove your affordability before applying.