How Long After Bad Credit Can You Get Car Finance?
There’s no fixed waiting period for getting car finance after bad credit – and that’s actually good news.
Most people assume they need to wait until negative markers disappear from their credit file before lenders will consider them. In practice, lenders aren’t running on a countdown timer. They’re assessing risk, and risk is mostly about what your finances look like now.
That’s why the real question isn’t “how long after bad credit can I get car finance?” It’s: “does my current situation look stable and affordable enough?” Some people are in a position to apply sooner than they expect. Others need more time, not because they’ve done anything wrong, but because the picture on paper still looks too uncertain.
Check your car finance eligibility — soft search, no impact on your credit score
Is There a Waiting Period for Car Finance After Bad Credit?
No, not in the way most people assume.
Most defaults, CCJs, IVAs and bankruptcies stay on your credit file for up to six years. But lenders don’t require them to expire before considering an application. They assess applications throughout that period, looking at four things:
- Recency: how recent the issue was
- Resolution: whether it’s been satisfied, settled or completed
- Behaviour: what you’ve done since, including missed payments, stability and new credit conduct
- Affordability: whether the repayments are realistic for your income and outgoings today
Context matters more than the calendar. “How long do I need to wait?” is often the wrong first question. A better one is: “Does my recent behaviour and affordability make me look financeable?”
Does Bad Credit Expire Before You Can Apply?
Not exactly, and this is one of the most common misconceptions.
Negative markers do eventually drop off your file after six years, but you don’t need to wait for that to happen before exploring car finance. Lenders look at the full picture of your application, not just whether issues have expired. An older, resolved problem on your file is treated very differently from a recent, unresolved one, even if both are technically still showing.
So if you’re wondering whether bad credit needs to expire before you can apply: no. What matters more is whether your current situation is stable, affordable, and shows a pattern of improvement.
How Long After a CCJ Can You Get Car Finance?
There’s no single rule, and how soon you can get car finance after a CCJ depends heavily on the specifics of your situation.
Some specialist lenders may consider an application even if the CCJ is relatively recent. Others prefer to see 12 months or more of clean credit behaviour after the judgment. The most important factor for many lenders isn’t timing alone. It’s whether the CCJ has been satisfied.
How long after a satisfied CCJ can you get car finance? A satisfied CCJ, meaning one where the debt has been paid, is generally viewed more favourably than an unsatisfied one at any point in time. It doesn’t guarantee approval, but it removes one of the biggest objections lenders have.
Other factors that typically influence decisions include:
- Whether the CCJ has been paid (satisfied vs unsatisfied)
- How recent the CCJ is
- How large the amount was
- Whether there are multiple CCJs
- Stability of income and overall affordability
For a fuller breakdown, see our guide: car finance with a CCJ.
How Long After Bankruptcy Can You Get Car Finance?
Bankruptcy tends to be treated as more serious than most other credit issues, but the timeline still varies significantly by lender and by how much has changed since.
The most important dividing line is discharge. If you’re still in an active bankruptcy, options are extremely limited. Once you’ve been discharged, the picture changes.
How long after discharged bankruptcy can you get car finance? Some lenders may consider an application not long after discharge if affordability is strong and recent conduct is clean. Others want to see a longer period of stability, typically 12 months or more of consistent behaviour after discharge, before they’ll approve.
People often ask whether lenders will accept them straight after bankruptcy. The short answer is: some specialist lenders might, but you’ll need to show that your finances are stable and that the repayment is genuinely affordable. The vehicle choice matters too. A sensible, realistic purchase is more likely to be approved than an aspirational one.
Key considerations usually include:
- Whether the bankruptcy has been discharged
- Time since discharge
- Evidence of financial stability since, especially over the last 6 to 12 months
- Affordability of repayments relative to income
For more detail, see: car finance after bankruptcy.
How Long After an IVA Can You Get Car Finance?
IVA situations split into two very different scenarios, and the answer to “how long after an IVA can I get car finance” depends almost entirely on which one applies to you.
During an active IVA: you’ll typically need permission from your insolvency practitioner before taking on new credit. Even with permission, many lenders won’t consider it. Options exist, but they’re limited.
After completing an IVA: your position improves meaningfully. When people ask how long after completing an IVA they can get car finance, the answer is that lenders care more about post-IVA stability than the calendar alone. Clean conduct since completion, consistent income, and a realistic monthly payment can carry significant weight.
For more detail on this scenario, see: car finance with an IVA.
How Long After Defaults Can You Get Car Finance?
Defaults are the most common form of bad credit, and there’s no fixed waiting period. What lenders are really asking when they see defaults on your file is: are these old problems or ongoing ones?
How long after recent defaults can you get car finance? The last 6 to 12 months is typically the toughest period. Defaults in this window, especially if unsatisfied, will often result in declines or very high rates even from specialist lenders. The further back they are, and the more resolved they look, the better.
Lenders typically focus on:
- Whether defaults are recent (the last 6 to 12 months is the hardest period)
- Whether they have been satisfied or settled
- Whether there’s a pattern of ongoing missed payments
- Current affordability and income stability
Older, satisfied defaults are treated much more favourably than recent, unresolved ones. If you have several on your file, see: car finance with multiple defaults.
What Matters More Than Time?
Across every type of bad credit, lenders come back to the same basics. You can’t change the past, but you can control what the last few months look like.
Recent financial behaviour is probably the single biggest lever. Clean conduct over the last 6 to 12 months, with no missed payments, stable direct debits and no rushed applications, can significantly improve your position.
Income stability reduces perceived risk. Consistent, provable income matters whether you’re employed, self-employed, or on benefits. The key is that it’s regular, documentable, and sufficient to cover the repayment comfortably.
Affordability is the factor people most often underestimate. Choosing a realistic vehicle and payment level can be the difference between approval and decline. Lenders want repayments that are clearly sustainable, not payments you’ll struggle with by month three.
Avoiding multiple applications matters more than most people realise. Submitting several hard-search applications in a short period can compound the damage to your credit file. If you’re unsure where you stand, a soft search car finance eligibility check lets you explore options without leaving a trail.
Do You Need to Wait Six Years for Car Finance?
No, and this is probably the most persistent myth in this space.
Six years is how long most negative markers remain on your credit file. But lenders assess applications throughout that period. Waiting for markers to expire isn’t a requirement, and in many cases waiting is unnecessary if your current situation already looks stable.
That said, applying before you’re ready, before income is stable or affordability makes sense, creates declines that can make things harder. The goal isn’t to apply as early as possible. It’s to apply when the application is likely to succeed.
If you’re not sure whether you’re in that position yet, it’s worth reading: will I be accepted for car finance with bad credit?
People Also Ask
How long after bad credit can I get car finance?
There’s no fixed waiting period. Lenders assess your current situation, including income stability, recent behaviour and affordability, rather than requiring a set amount of time to pass. Some people are eligible sooner than they expect; others need more time to demonstrate stability.
Is there a waiting period for car finance after bad credit?
No formal waiting period exists. Most lenders will consider applications while negative markers are still on your file, as long as recent conduct and affordability look reasonable.
How soon can I get car finance after a CCJ?
Some specialist lenders will consider applications even with a recent CCJ, particularly if it’s been satisfied. Others prefer 12 or more months of clean behaviour since the judgment. The satisfaction status of the CCJ is often as important as how recent it is.
How quickly after bankruptcy can I get car finance?
Once discharged, some lenders may consider an application relatively quickly if income is stable and the repayment is clearly affordable. Most prefer to see several months of clean conduct after discharge before approving.
When can I apply for car finance after bad credit?
As soon as your current situation looks stable and the repayments are genuinely affordable, not necessarily when the markers disappear. Using a soft search eligibility check first lets you explore options without impacting your credit file.
Final Thoughts
There’s no universal answer to how long after bad credit you can get car finance. Whether the issue was a CCJ, bankruptcy, IVA, or multiple defaults, lenders look at the full picture: how recent the problem was, whether it’s been resolved, what your finances look like today, and whether the repayments are sustainable.
Rather than guessing how long to wait, the safest next step is to check your eligibility in a way that doesn’t touch your credit file.
Check your car finance eligibility — soft search, no impact on your credit score