Can I get Car Finance with a CCJ, Default or IVA?

Rates from 19.9% APR. Representative APR 29.9%

Can I get Car Finance with a CCJ?

Yes! Although getting car finance with a chequered financial past can be problematic, it’s not impossible, and there could well be a deal for you!

A  successful car finance application, whilst you have a default penalty on your credit files such as a CCJ, IVA, or Default Notice, can be a helpful way to help you improve a bad credit rating.

Many of us have missed payments or gone through a cash crisis at some time in our lives. However, Defaults, a CCJ or an IVA do not need to rule you out of getting car finance. Drivers still need to finance a car, and some lenders specialise in offering deals, including those with a CCJ, IVA or default on their credit file. These lenders look past your credit score and consider things like affordability and other criteria in deciding if you are eligible for car finance.

What default penalties can impact your credit report?

There are several Default Penalties in addition to a CCJ that could affect your credit score.

What is a CCJ - County Court Judgement?

The courts can issue a  County Court Judgement (England, Wales and Northern Ireland) against someone for non-payment of a debt. The equivalent in Scotland is a Money Judgment decree.

A CCJ may be registered against you if your creditor believes you won’t repay the money you owe them. Assuming the courts agree with your creditor, you’ll receive a judgement requesting you pay up. Failure to settle the debt and your CCJ will be added to the Judgements, Orders and Fines register, a public list. The CCJ will remain on your credit file for six years even if you have repaid the debt.

However, If you apply for car finance with a CCJ, we would like to find you the best deal for your circumstances. Our partners have a large panel of lenders specialising in providing bad credit car finance even with a CCJ on your credit profile.

What is a Default Notice?

A default occurs when you miss payments and receive a Default Notice. Defaults are likely to occur if you miss payments for more than three to six months, but the number of missed payments to trigger the default is up to the lender. Your credit score carries the Default Notice for six years, although it loses impact over time when you settle the outstanding amount.

Warning. A Default Notice can occur on any account, including a bank overdraft, credit card account, utility or mobile phone supplier, carfinance or mortgage. Receiving a default is not about how much you owe. You could receive a Default Notice for as little as a  few pounds or thousands.

The Consumer Credit Act 1974 requires the Default Notice to state the payments you failed to make with a date you must clear the debt. Failure to meet these requirements and the account becomes the default.

Securing car finance with a default on your credit history is undoubtedly doable. However, lenders will require a complete understanding of your financial situation before deciding.

Don’t ignore a Default Notice. If you do, the default can become a CCJ, a far more severe penalty with a much more significant negative impact on your credit.

What is an IVA - Individual Voluntary Arrangement?

An IVA is an official agreement between you and your creditors to give you more time to repay your debts making things more affordable. A further plus to entering an IVA, your creditors cannot take other action against you, which stops them from taking out a CCJ.

You’ll need to appoint and pay a fee to an Insolvency Practitioner to manage your IVA. The task of the insolvency practitioner includes calculating the amount you can repay and the duration of the IVA. You’ll have to give information about your assets, income, debts and creditors. And agree to make monthly payments to the insolvency practitioner who distributes the money between your creditors. Creditors equaling 75% of the total amount you owe must concur for the IVA to happen.

An IVA remains on your credit file even after settlement for six years from the commencement date. If you are currently in an IVA, the terms of your agreement could cause difficulty finding car finance. Your Insolvency Practioner must be in accord with you making a finance application, and your creditors may receive a request for further information.

If you have paid off your IVA, it stays on your credit file for six years from the commencement date. However, getting an offer of car finance will be easier after settling the IVA.

What is a DMP - Debt Management Plan?

A DMP is an informal arrangement with creditors, usually managed by a financial company. You could set up a DMP yourself if you feel confident with the help of someone like Step Change, a debt charity. A Debt Management Plan organises your debts by allowing repayments over a longer term to reduce your monthly outgoings. Most creditors will likely agree to stop interest and charges, but they don’t have to and may still take action against you, such as a CCJ.

Buying a car whilst in a Debt Management Plan is not against any guidelines. However, a DMP agreement will likely require you to check with the DMP finance company.

A DMP can appear on your credit report as some creditors may request an entry on your history to state you are in a DMP.

What does Bankruptcy mean?

Bankruptcy is an option for those who cannot repay their debts. You must owe more than £5000 to go bankrupt legally and might first consider alternatives such as an IVA or Debt Management Plan. Being bankrupt is not pleasant and can be a scary process to go through. However, after a year of Bankruptcy, you’ll usually be discharged – releasing you from all debts covered by your Bankruptcy. In some instances, discharge can take longer – this is known as delayed discharge. You can request removal from your credit file once release from Bankruptcy occurs.

How can I avoid a CCJ?

If you struggle to repay debts, you can always talk to a free debt manager such as Money Helper. Speaking to an experienced debt advisor can help you understand your options and make the best decision.

The sooner you take action, the more likely you can avoid receiving a CCJ.


First, you’ll speak with your creditors to be calm and sincere. Your goal is to get their agreement to allow you to continue making payments and avoid court proceedings via a CCJ.

Second. You must make payments as agreed. Paying your debts earlier than agreed, if possible, will demonstrate to lenders that you’re serious about clearing the debt and can only help improve your credit. When using savings to reduce your debts, be careful and ensure you retain sufficient funds for a rainy day.

Once you receive a CCJ, you have two options to avoid this going on your credit file. Either pay before the court date or pay off the total amount within one month of the CCJ issue date.

However, If you pay the total amount of the CCJ but more than a calendar month after the judgment date, you can limit the damage. Applying to have the CCJ marked as ‘satisfied’ on your credit file will look better than remaining unpaid.

Managing your budget with a CCJ

Ensuring a consistent income is essential when you have credit problems, and you’ll likely need a  decent car to travel to work. However, with a CCJ, you may struggle to get approval for car finance.

We understand affordability is crucial, and keeping to a monthly budget you can afford is a necessity. We’d ensure any car finance we offer suits your circumstances and that the repayment period fits your budget.

How to apply for car finance with a CCJ

Using our car finance calculator, enter the amount you’d like to borrow over a period that suits you. The calculator displays an idea of the monthly repayments and helps you see how it might work in your budget. Alternatively, apply for a quote for CCJ car finance now with No effect on your credit score.

How to get car finance with CCJ

The problem is not whether you can get car finance with a CCJ but whether you can afford the repayments. CCJ car finance offers come with a significantly higher APR than drivers with a better credit history.

With higher interest rates and fewer lenders providing CCJ car finance, you might think finding a deal to suit your circumstances will be difficult. However, with such a large panel of lenders, including several who specialise in CCJ car finance, we can hopefully find you a deal that matches your affordability.


Before accepting a quote for CCJ car finance, ensure you can provide all the documentation and details the lender request and don’t get a decline through lack of preparation. Lenders carry out an affordability check to determine the risk and how likely you are to make the repayments.

Applications for CCJ car finance do get approval; however, adding a guarantor or a joint application (someone to make the payments if you cannot) will significantly increase your chances of getting a car loan.

How long is a CCJ registered against you?

CCJs remain on the public register for six years from the date of judgment. If you’re unsure of the date, you can always check on the Register of Judgments database There is a fee.

The information available about a specific CCJ includes:

Claim number.

Date of the judgment debt.

Amount of debt.

Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed), and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37.

We look to find the best rate from our panel of lenders and offer you the best deal you’re eligible for. We don’t charge a fee for our service, but we earn a commission. This does not influence the interest rate you’re offered in any way.

Autedia Limited is a credit broker and not a lender, authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 948436). You can check the authorisation on the FCA Financial Services Register.