If you are currently in an IVA it can make it difficult to take out a new credit agreement, such as car, van or motorbike finance.
However, it’s not impossible to get a car loan with an IVA.
Moneybarn has expert knowledge in providing finance to customers in an IVA, who have bad credit or a poor credit score.
Will an IVA affect my car finance?
A car lease agreement is treated in the same way as HP. You should be allowed to continue making the payments during your IVA as long as they are not unreasonably high. Because your credit rating is poor you will only be able to get vehicle finance from a sub prime lender. They will be more expensive.
Can I get credit with an IVA?
Can I get credit or loans on an IVA? While you have an IVA (individual voluntary arrangement), there are rules over not taking out further credit, such as loans and credit cards. You’ll need written permission from the insolvency practitioner (IP) supervising the arrangement before you can borrow any further money.
Will I lose my car with an IVA?
Will I Lose my Car in an IVA? If you enter into an Individual Voluntary Arrangement (IVA), you will generally be allowed to retain your car provided that it is necessary for work or family transport reasons and the car’s value is not excessive. The debtor can make a case for retaining a higher value vehicle.
How much does an IVA affect your credit rating?
An IVA will affect your credit rating as it will stay on your credit file for six years after the date of commencement (typically one year after your IVA has been completed).
Photo in the article by “Wikipedia”