It's easy to assume that having a County Court Judgment (CCJ) or being bankrupt means you're completely shut out of car finance options. But the reality is, lenders don't all look at applications the same way, and some will actually consider your application even with a CCJ or bankruptcy on your record. Of course, it's still a bit of a tougher road, but it's far from impossible.

The thing is, car finance lenders are a pretty varied bunch. Some of them specialise in offering deals to people who have struggled with credit in the past. carloans 365 can help match you up with a lender that is willing to consider your application.

What is a CCJ and Bankruptcy

So what exactly is a CCJ? Well, it's when a creditor takes you to court because you've failed to pay back a debt. It stays on your credit file for 6 years, although its impact will fade over time, especially if you do manage to pay it off. Bankruptcy on the other hand, is much more serious and generally lasts for 12 months, though the record can stay on your credit file for longer.

Both of these things will knock your credit score and make it harder for lenders to see you as a good risk. However, what tends to interest lenders more is what's happened in your life since the CCJ or bankruptcy. If you've turned your finances around then that can actually work in your favour when you go to apply for car finance.

Can You Still Get Car Finance

Yes, it is possible to get car finance with a CCJ or after bankruptcy. It's just that the options available to you may not be quite the same as those available to people with a spotless credit record.

As it happens, some lenders are pretty good at working with people who've had less than perfect credit in the past. These lenders tend to focus more on whether you can actually afford the repayments and how well you're managing your finances now rather than just relying on what's happened in the past. So even if you've been turned down elsewhere, there may still be some options available to you through carloans 365, who work with a whole panel of lenders who are happy to consider people with all sorts of credit histories.

How Lenders Assess Your Application

When you apply for car finance with a CCJ or bankruptcy on the cards, lenders tend to take a close look at your financial situation.

First off, they will want to check that you're actually earning enough to be able to afford the repayments. Having a steady income is a big plus. They'll also want to check that you've got enough disposable income left over after you've paid all your essential bills.

Another thing they'll be looking for is recent financial behaviour. So you'll need to show them that you can manage your finances well, are making regular payments and haven't missed any payments recently. They'll also want to know how long ago your CCJ or bankruptcy was, and how it's affecting your credit record at the moment.

carloans 365 makes this process easy, they will present your application to lenders who are already open to considering people with credit issues.

Finance Options Available

For a lot of people with poor credit, Hire Purchase (HP) is a good option. It means you'll be making regular payments, and at the end of the agreement the car is yours to keep. It's a bit more appealing to lenders than unsecured borrowing, which is why it's a pretty accessible option.

Personal Contract Purchase (PCP) can be an option too, although the rules can be stricter and it depends on your overall financial situation.

carloans 365, will look at both options and see what's available tailored to your circumstances, you don't need to go round all the lenders individually.

Higher Interest Rates

Having CCJ or a bankruptcy on the cards, you may well find that you're offered higher interest rates than someone with a perfect credit history.

But the thing is, the interest rates can vary a lot depending on your current situation, and as your credit profile improves over time you may find you're able to get better deals in the future.

Improving Your Chances

If you're planning to go for car finance, there are a few things you can do to improve your chances of getting approved.

First off, you should take a close look at your credit report to make sure all the information is up to date and accurate, especially if you've paid off your CCJ and make sure that shows on your record. Keeping up with payments and avoiding new missed payments is also key.

Saving for a deposit can also make a huge difference as you’ll be borrowing less, and it can also increase your chances of getting approved. To lenders, having a stable job and a steady income is a big plus.

How carloans 365 Will Help Your Car Loan Application

carloans 365 works with a wide panel of lenders, including some who specialise in bad credit car financing. That means they can help people who have CCJs, defaults, missed payments or past bankruptcies find a finance option that works for them.

The whole process is pretty straightforward. You fill in a secure online application, and the team will go through their lender panel to find out what options might be available to you. Where possible they use a soft search first , so you can check how likely you are to get approved without it affecting your credit score.

If you get approved, you can pick a vehicle from a dealership and carloans 365 will sort out the rest, helping guide you through each step.