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:

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