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Having a <a href="https://www.caruno.co.uk/car-finance/bad-credit-car-finance">bad or poor credit</a> score with a history of financial penalties like an <a href="https://www.gov.uk/options-for-paying-off-your-debts/individual-voluntary-arrangements">IVA</a> or <a href="https://www.gov.uk/county-court-judgments-ccj-for-debt">CCJ</a> can affect your chances of getting car finance. This, however, doesn’t mean that you definitely won’t be able to get the car you’re after on a finance term to meet your requirements and current circumstances.&nbsp;

At caruno, we understand how important a vehicle can be for day-to-day life, for getting to work, running errands, and visiting family. Your previous financial speed bumps shouldn’t determine where you are right now. And we can help.&nbsp;

To help on your car buying or leasing journey, caruno has answered some frequently asked questions around car finance with IVAs, and CCJs. So, if you want to know: can I get car finance with an IVA or CCJ?, we are here to help.

Can I get car finance while in an IVA?&nbsp;

An individual voluntary arrangement (IVA) is a formal debt solution between individuals and their creditors, to pay back debt over an agreed upon time period. This process is a way to sort out debt before being declared bankrupt by creditors.

On the upside, an IVA shows creditors you are serious about sorting out your credit issues.&nbsp;

Once under an IVA you will have to ask for permission in order to get credit over the value of £500. Not asking permission can result in a breach of the legal agreement. This means, when it comes to leasing a car, you’ll have to ask permission before accepting any type of car finance.

Despite all this, it’s still possible to get car finance whilst in an IVA, even if the process proves to be more difficult. It’s a good idea to seek the help of a lender with experience in assisting people with bad credit.&nbsp;

At caruno, we have a dedicated team that works with a wide range of lenders, helping customers with different credit backgrounds to find a car finance term that’s right for their individual needs.&nbsp;

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How do IVAs and CCJs affect your car finance options?&nbsp;

Many brokers and lenders are not prepared to offer loans to applicants with an unfavourable credit history. This includes anyone with IVAs, and CCJs. It can be challenging for some motorists to find a reputable business that’s willing to take care of their specific financing needs.

Caruno is one of the few companies that is experienced and ready to find car finance to meet a range of unique circumstances.&nbsp;

We understand that life is unexpected and doesn’t always go to plan. It’s normal to hit a bump in the road. A missed credit card payment, or even an IVA or CCJ shouldn’t mean that you can’t get a car to keep you moving.

Being in an IVA doesn’t always stop you from getting credit. Your IVA practitioner can approve your request to get car finance. This may also help to improve your credit score and present you as less of a risk to lenders. You may, however, be quoted a higher interest rate.

If your IVA provider is prepared to write a short letter in support of your efforts, this could help you secure the finance you need. Remember, many IVA companies will view this as a positive move, as access to a car means getting to and from work. This’ll help you repay your debts.

Many lenders and brokers view CCJs as deal breakers. This is not the case with caruno. We believe that these issues happen to many people, for many reasons, and they shouldn’t be denied the chance to improve their situation.

It’s true that in these circumstances, you may have to pay more interest, and you probably won’t qualify for zero deposit leasing. However, this won’t stop our responsible lenders from looking at your affordability, and doing their very best to grant you credit. With our broad range of cars, there’s a good chance caruno can arrange the right deal for you.

How do I buy a used car with an IVA or CCJ?&nbsp;

If under an IVA or a CCJ, you will be assigned an Insolvency Practitioner (IP). It is your IP’s job to help manage your debt repayments, and any other financial agreements you want to enter into.

When it comes to financing for a used car loan, you’ll need written permission from your IP. To get this, you’ll need to prove the following:

If you can prove to your IP that you can afford to repay your car loan, whilst still covering your other debts and expenses, you’ll have a better chance of getting their permission to get a car.&nbsp;

If your circumstances prove that you need a car, your IP is more likely to give permission. For example, if driving to work is less expensive than commuting on public transport, your chances of receiving the letter are improved.

Ways to improve your chances of getting car finance with an IVA or CCJ?&nbsp;

Improve your chances of getting car finance with an IVA or a CCJ by doing the following:

Studying your credit file will help you figure out your chances of being approved for car finance. This will give you a better understanding of what lenders will be looking at when you apply. You can take this opportunity to raise any queries about possible mistakes on your credit file.

Being approved for car finance means lenders will take a careful look at your credit history. There are several things you can do to improve your credit score, including the following:&nbsp;&nbsp;

READ: <a href="https://www.caruno.co.uk/advice-and-guides/car-finance-with-bad-credit">Can I get car finance with bad credit?</a>

Saving for a deposit will improve your chances of being accepted for car finance. It could also mean getting a better rate. The higher the deposit, the better your chances of finding a favourable car finance option.

A guarantor will be liable for any payments you fail to make. If you know someone who is willing to act as a guarantor, this’ll make you a safer bet in the eyes of lenders. It may also mean a better deal with a lower interest rate, than if you applied on your own.

Caruno is committed to helping everyone find the most affordable and convenient <a href="https://www.caruno.co.uk/car-leasing">car leasing</a> option for their financial circumstances. Take advantage of our soft credit searches that provide instant decisions, without affecting your credit score.

Try our fast and easy <a href="https://www.caruno.co.uk/car-finance/eligibility-checker/">eligibility checker</a> to see your likelihood of approval for car finance.&nbsp;

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Can I get car finance with an IVA or CCJ?