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Can I Get A Car Loan While In Bankruptcy?

Hi Rachel, i'm currently into my 5th month of my bankruptcy.

I have just ordered a cashplus prepaid MasterCard mainly for the credit builder facility. Should i activate the credit builder option now while bankrupt or wait until i'm discharged in 7 months?

I know it's a little early but i will be looking for car finance in about a year if possible, so trying to prove myself to potential lenders as early as possible.

Asked by Mark

Hi Mark, thank you for your question.

Unfortunately you can't apply for any credit until you have been discharged from your bankruptcy. However, when this day comes activate the credit card and its builder facility as soon as you possible can.

After you have been discharged from bankruptcy the more credit you can re-build before you apply for car finance the better. Please try and keep ALL payments up to date and setting direct debits up for all your outgoings is a good habit to get into so that you never forget to make payments.

As long as you have a UK licence and are employed we have a chance of getting you accepted. Please apply when you are ready to do so and once approved we provide a no obligation quote and you can choose a car from any dealer nationwide. Kind Regards, Rachel

Tim Carpenter
Answered by Tim Carpenter Car Finance Expert Edited on

Liked by 19 People

5 Years
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Rates from 6.9% APR: the exact rate you will be offered will be based on your circumstances

Representative example: borrowing £6,500 over 5 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £188.74 per month, with a total cost of credit of £4,824.37 and a total amount payable of £11,324.37

Rates may differ as they are dependent on individual circumstances. Subject to status.

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