Can You Still Get Car Finance if You Have an IVA?

If you’re currently in an “individual voluntary arrangement” or IVA, you may be wondering if you can still get car finance. While it may be more difficult, it is not impossible, but your credit records will certainly play a crucial role in the lender’s decision-making process.


An IVA is a contract between a person and their lenders via a third party, usually when they’re having difficulty paying off their debts. They’ll be given a chance to repay their debts through regular instalments over a certain period. Repayments need to be completed within a specific time frame, and once the IVA is completed, it will be removed from the Individual Insolvency Register after three months. However, it will take six years for the IVA to be removed from your credit report starting from the date the agreement began.

Despite having an IVA, you can still apply for car finance, although lenders may consider you a high-risk borrower. They may reject your application or offer deals with higher interest rates. Therefore, it’s important to improve your credit score before applying for car finance to increase your chances of getting approved.

Once you’ve completed your IVA, it will appear on your credit report, and car finance companies will check it when you apply for financing. Seeing an IVA on your credit history may give the impression that you’ve had difficulties keeping up with your repayments in the past. However, this does not automatically mean your application for car finance will be rejected. Some lenders may see the IVA as your way of becoming a more responsible borrower by taking the necessary steps to settle your debts with other creditors.

Here are some steps you can take to improve your credit score:

  • Register to Vote: If you’re not registered on the electoral roll yet, it’s crucial to do so as it can significantly affect your chances of acquiring car financing. You can register online through
  • Check for Errors on Your Credit Report: Ensure that the details on your credit report, such as your name and address, are accurate. If you spot any errors, report them immediately to the credit reference agency so they can be corrected.
  • Check for Any Suspicious Transactions: Look at the transactions on your credit report, and if you see something that’s not quite right or unfamiliar, it could be a fraudulent transaction. Report it immediately to the credit reference agency.
  • Pay Bills on Time Every Time: Paying your utility bills, phone, internet, and credit card bills on time can significantly improve your credit score. Set up reminders to ensure you don’t miss any payments.
  • Pay Off Your Existing Debt: Although no rule says you can’t get car finance with an IVA, it’s best to pay off your existing debts first. Once you’ve completed the IVA and have become more responsible with your finances, you’ll have a better chance of being approved for car finance.

If you want to get car financing with an IVA, you’ll need to talk to the Insolvency Practitioner. They will want to know why you need a car, such as if you need it to get to work. While having an IVA may make it more challenging to get approved for car finance, it’s not impossible. Improving your credit score and showing you’re a responsible borrower will increase your chances of getting approved.

Interested to learn more? Check out our How to Get Approved for Car Finance When you are in an IVA guide