I'm in a debt management plan. Can i get car finance?

Hi, i have a credit rating of 873 on Experian but I am concerned about applying for car credit due to my history. I have been in debt management plans for the past 7 years (now had a joint IVA for 3yrs) because of bad problems with credit in the past. As a result of this I have not applied for credit since then and so cannot demonstrate any satisfactorily settled accounts and am concerned this would affect any application I make. I'm also concerned as to whether I should be applying for credit or if this would breach terms of an IVA (nothing in my agreement to say so). How successful am i likely to be in applying for credit ? I am not even sure how much I could apply for etc. so any advice appreciated. My husband and I have a combined sal of approx 50k and could probably get together a small deposit if required. Emerlou

Asked by Emerlou
January 30, 2013

Hi Emerlou, thank you for using our Q&A. All I can suggest is that you apply as it is hard to say whether we will get you approved without seeing your credit profile. It may help if you put an application through with your partner so we can see what the best option for you would be. we have however been able to secure previous customers in similar situations to yourself an approval. I hope this helps, Rachel


Debt Management Plans related questions

Hiya Rachel. I am currently on DMP with my wife. We owe roughly about £2500 - £3500 and we pay our mobile phone contract on time and have kept up to date with payments on this and also the plan. We haven't missed any payments on anything else that I hav

Asked by Joetex
January 30, 2013

Hi Joetex, Thank you for your question. There are advantages and disadvantages of buying a car on a credit card that are all explained here. However, you wouldn't be able to transfer the debt from the credit card and into your debt management plan. Have you had your credit card since you entered your DMP? I'd be surprised if it still worked if you had it pre entering the DMP. Anyway i'm confident we could potentially help and perhaps at a better rate than your credit card company can offer as you have some current clean credit. We do also have lenders on our panel that help people in "DM" plans so please don't let that put you off making an application with us. If approved with us the loan will help you improve your credit score and we do provide a no obligation quote and let you buy a car from any dealer. Please apply here (when you are ready). Have a good evening. Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 8 People

I am in a debt management plan and have been for approx 6 years. I recently got a credit card etc no probs but was one for rebuilding bad credit. Although things are tight I make my payments every month. I'd like to borrow approx £3-4k and I have my car a

Asked by Carol
January 30, 2013

Hi Carol, we'd love to be able to help but i can't promise anything until we've seen your credit history. Have you applied anywhere else online recently and been declined? If so, where? Are you employed and do you have a deposit at all? Regards, Rachel :-)
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 3 People

I currently have a DRO on my credit report. Since then I have managed to get a contract phone, which I have been paying on time for the last year. I was also accepted on a credit card and have been paying for just over a year. I start a new job this week

Asked by Kevin Fenwick
January 30, 2013

Hi Kevin, thank you for your question. It certainly sounds like you're getting back on track and as you have some current clean credit this will certainly go in your favour. As you will be classed as self employed we will need to see 3 months bank statements before we could get a deal completed. If you don't have these yet please apply when you can have these available. If approved you can get a car from any dealer. Kind Regards, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 7 People

I have just come out of a DRO, and haven't yet tried for credit. I do not work at present, but wish to start but need a new reliable car in order to do so. So my question is would I be able to get car credit somewhere? I also have an old car to part exch

Asked by Danielle
January 30, 2013

Hi Danielle, thank you for your question. We can help people who have completed their debt relief orders but the vast majority tend to be employed. There is a chance we can get you approved but we'd need to show bank statements to the lender detailing your income to show you can afford the monthly payments. I take it that you are currently on benefits? Please make an application and we'll try our best to get you accepted. We deal with many specialist lenders so we have the greatest chance of getting you approved. If accepted we provide a no obligation quote and you can choose a car from any dealer. Kind Regards, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 8 People

I need to buy a new car as my old one is slowly giving up the ghost, i have a debt management plan and have been paying it successfully over the past 3 years. My credit rating is very poor due to the arrears with a few of my creditors. I am looking for a

Asked by Marnie Pender
January 30, 2013

Hi Marnie, we'd love to help and if we get you approved £4000 shouldn't be an issue. What arrears do you currently have and what is the total amount of outstanding debt left to pay? Do you have a deposit or part exchange to put into the deal? Lastly, have you applied anywhere else online and if so, what has been the response? Regards, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 11 People

I need to change my car because mine is old, expensive and is a petrol engine. I need a diesel and small car because of mileage and arthritis. I've only been offered finance at 33% as I had a husband who left me with all of the debts he put on my cards. I

Asked by Vicky
January 30, 2013

Hi Vicky, unfortunately due to your circumstances you won't be able to obtain high street rates but 33% does seem high. Where have you been accepted and what is the finance company? I'm confident that if we can get you approved we'll be able to beat the 33% you have been offered. If approved the £6000 over 4 years won't be a problem. Kind Regards, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 5 People

My husband and i are on a DM plan and have a car on lease which is coming to an end. We have tried to get a secured loan to pay it off but was declined because we have defaults. We are both working and are on the electrol roll, we've never missed any paym

Asked by Paula
January 30, 2013

Hi Paula, we'll try our best to help you both out. Please make a joint application and we'll see what we can do. Would you have a deposit at all to place into the deal and how much are you looking to finance on a newer car?
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 4 People

My husband and I are looking to get a new car for a max of £6,000. We don't have mush deposit (maybe around £500) as my husband has just come out of a company car. We both have defaults on our credit due to my hours being reduced at work for a temp period

Asked by Leanne
January 30, 2013

Hi Leanne, thanks for using our Q&A. We are able to get approvals for customers currently in a debt managment plan but the lenders who approve such customers usually require a deposit (yours seems plently).We would obviously need to see an application so we can see the rest of your credit to see if it is strong enough, but as long as you are showing intent to improve your credit profile and are registered on the electoral roll there shouldn't be too much of a problem. I hope this helps, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 11 People

Hi, I was in a well paid job and got made redundant just over year ago. I got another job straight away but the pay was significantly less than what I was on. I missed a lot of payments on cards and a personal loan and I have now chosen to go on a debt ma

Asked by Darren W
January 30, 2013

Hi Darren, thank you for your question. As you're currently in a DM plan do you have any live agreements for payments that you make on time each month or do all your active accounts say "defaulted" as you're in a payment arrangement? It's difficult to predict whether we'd get you approved without seeing your credit profile as each lender we deal with has different criteria. We have approved people in the past who have been in DM plans so there is a chance and £7000 isn't a huge amount (i've seen a great deal worse). Please make an application and we'll see what we can do. Thank you.

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