FAQs - Checking eligibility
Can I get car finance after bankruptcy?
Wednesday, 07 December 2022
If you were previously made bankrupt, you can still apply for car finance with us but you must have been discharged from your bankruptcy for a minimum of 6 years at the point of application. If you’re unsure how long after your bankruptcy it has been, you could still submit an application. We’ll carry out a soft credit check which won’t impact your credit file but will tell you if we could lend to you.
How does bankruptcy affect my credit score?
When you declare bankruptcy, most of your unsecured debts are written off, and your creditors can’t take legal action to recover your debts. Record of bankruptcy stays on your credit file for 6 years, so this may have a big impact on your credit score.
Lenders will make a soft credit check when you apply for finance. This looks at a number of factors to help them determine if you are eligible. Having a bankruptcy on your file can make it harder to get finance, including car finance.
How long should you wait after bankruptcy to apply?
Getting car finance while still in bankruptcy can be very difficult. You may be able to get credit but if you want to borrow over £500, you have to notify the lender of your bankruptcy. Most lenders won’t offer car finance for bankrupt people.
Once you’re discharged (typically after 12 months), the more time that passes, the better your chances of financing a car after bankruptcy.
Bankruptcy car finance can be difficult as lenders will see that as a higher risk to lend to, even after being discharged. Thankfully there are some things you could do to help improve your credit score:
- Check your credit report and make sure the information on your file is correct
- Make sure you are on the electoral roll
- Ensure you make payments on time
Car finance after bankruptcy
We specialise in helping people into the car they need, even if they have a poor credit history. As long as you’ve been discharged for a minimum of 6 years, you could join the thousands of customers we help each month onto a better road ahead.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
