📉 Can You Get a Car Loan After a Debt Agreement?
Yes! While a Part 9 debt agreement impacts your credit history, some lenders offer car loans to applicants who have completed their debt agreement.
Your approval chances depend on:
✅ Whether the debt agreement is active or completed
✅ Your credit score after the agreement
✅ Your income stability
✅ The lender’s policies on bad credit applicants
Mainstream banks usually reject applications from people with a recent debt agreement, but specialist lenders and brokers can still help.
🔍 How Does a Debt Agreement Affect Car Loan Approval?
A Part 9 debt agreement is recorded on your credit file for five years and appears in the National Personal Insolvency Index (NPII). This affects how lenders assess your application:
| Factor | How It Affects Your Car Loan | Can You Still Get Approved? |
|---|---|---|
| 📅 Debt Agreement Status | Active agreements make approval difficult. | ❌ Most lenders require the agreement to be completed first. |
| 💳 Credit Score | A debt agreement lowers your credit score significantly. | ⚠️ Some lenders approve loans if you’ve rebuilt your credit. |
| 💰 Time Since Completion | More time after completion improves approval chances. | ✅ Lenders prefer applicants 2+ years after discharge. |
| 🔁 Existing Debts | High remaining debts can make lenders reject your application. | ⚠️ Paying off other debts improves your chances. |
| 🏦 Mainstream Bank Approval | Banks have strict policies against debt agreement applicants. | ❌ Banks usually reject applications, but brokers can help find alternatives. |
If your debt agreement is still active, lenders will not approve a car loan unless you get permission from your debt administrator.
✅ How to Get a Car Loan After Completing a Debt Agreement
To increase your approval chances, take these steps before applying:
1️⃣ Check Your Credit Report – Ensure the debt agreement is correctly marked as completed.
2️⃣ Rebuild Your Credit – Use a low-limit credit card or personal loan to show positive financial behavior.
3️⃣ Show Proof of Income Stability – Lenders prefer applicants with consistent employment.
4️⃣ Save for a Deposit – A deposit reduces risk for lenders and increases approval chances.
5️⃣ Use a Finance Broker – A broker can find lenders who approve car loans for ex-debt agreement applicants.
🚨 Can You Get a Car Loan While a Debt Agreement Is Still Active?
It’s very difficult to get a car loan while your debt agreement is still in effect, but it may be possible if:
✅ You receive approval from your debt administrator.
✅ The loan is essential for employment purposes.
✅ You apply through a lender that specializes in hardship cases.
However, most lenders will require you to wait until the debt agreement is completed before considering your application.
🚀 Why a Finance Broker Can Help If You’ve Had a Debt Agreement
If you’ve been rejected for a car loan due to a past debt agreement, a finance broker can help by finding lenders willing to approve you.
✅ Find lenders who approve post-debt agreement applicants.
✅ Match you with a secured loan for better approval chances.
✅ Help you avoid unnecessary credit checks that harm your score.
If your debt agreement is stopping you from getting a car loan, don’t assume you’re out of options! 🚗💨 A finance broker can help you secure finance and get you back on the road.
If you’ve been in a debt agreement but need a car loan, you still have options! A finance broker can match you with lenders who specialize in post-debt agreement car finance.
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
