www.iva.co.uk

How can you get a loan after coming out of IVA? We have been out of IVA for several months and have had a few issues with our car which resulted in trying to get a loan without success, we therefore had to get a payday loan to fix car on more than one occassion and the rates are stupid. There must be someway of getting a loan so we can get a car.

Whilst your IVA remains on your credit records, gaining new credit is nye on impossible.

Unfortunately you will struggle to get high street loan rates for some time to come until your credit ratings are back to some normality.

There are a number of car companies that will help you with car finance, although these maybe at higher interest rates than normal....Moneybarn, PCF Finance are just a couple that I know about....

Hi,

You could try something like Moneybarn or Carloans4U as they are IVA friendly. The APR is higher than a normal bank but not as high as Payday loans and you will get a reliable car.

Hi CB3. Don't keep trying to get loans --- these will leave footprints on your credit record that not do you any favours going forward, as will evidence of repeated payday loans.

Have a chat with the companies Niobe has pointed out to suss out the chances of success ( and affordability) before any more searches are carried out.

Moneybarn and Carloans4U also leave footprints on your credit records...I know from exeprience last year !

I think all applications for credit will leave a trace on your record.

This is true, luluj, which is why I suggested having the chat to suss out the chances of success BEFORE any formal application is made.

Apologies -- my wording wasn't as clear as the thoughts in my mind

cb3 Have you had your CC and has 6 years lapsed since you entered into your IVA??

DO NOT START OUT BIG!!!

Sorry for shouting but had to get the point across.

Post IVA you are rebuilding your rating from pretty much a blank canvas after the IVA and associated defaults have dropped off(this must happen before bothering with any mainstream lending).

Start small,a £250 credit limit high interest credit card. A catalogue account somewhere,a small sofa or bed from one of the big furniture shops,maybe even a small item on credit from currys or dixons.

Lenders want to see evidence that you can repay debts so applying for a larger loan without having any real credit history will result in rejections.

Taking a large loan with moneybarn or carloans4u may be an option but keep an eye on what you are paying,it will be extortionate and if you waited 12 months while rebuilding your records you may find it easier to get finance from the car dealers.

Good luck.

Paul

It's not as extortionate as payday loans to repair the car though. Depends on how long the existing car is going to last.

I meant extortionate in comparison to waiting 12 months and securing a normal rate apr loan or finance deal. Clearly if payday loans need to be continualy used that too shall become costly.

Paul

The trouble with payday loans is that they also don't so much leave a footprint on a newly rebuilt credit file -- but a rather large stain! The odd one is fine, but if future potential lenders see that a person is regularly resorting to payday loans it flags up that they are living close to the edge and a bigger risk.

Agree Foggy - if you need to use these on a regular basis then it has to send out a warning signal to other lenders.