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.
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.
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:
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.
Representative example: Total amount of credit £10,451. Repayable over 58 months, 57 monthly payments of £341.17. Representative 33.5% APR (fixed). Deposit of £929.41. Total charge for credit £8,995.69. Total amount payable £20,376.10. Subject to status and affordability. You could risk losing your vehicle if you do not keep up payments.