What "bad credit" means to van finance lenders
Lenders assess credit history by looking at several factors: County Court Judgements (CCJs), defaults on credit agreements, missed or late payments, Individual Voluntary Arrangements (IVAs), and bankruptcy. Each is weighted differently - a satisfied CCJ from 3 years ago is very different from an unsatisfied CCJ from last month.
Bad credit doesn't mean automatic decline - it means the lender needs more information and will charge a higher rate to reflect the additional risk. The severity and age of the adverse credit, and what's happened since, matters enormously.
Types of adverse credit
- CCJs - County Court Judgements for unpaid debts
- Defaults - formal recorded failure to repay a debt
- Missed or late payments - recorded on your credit file for 6 years
- IVA (Individual Voluntary Arrangement) - a formal insolvency process
- Bankruptcy - most severe; typically requires 6+ years clear
What lenders look at beyond the credit score
Specialist lenders look at the whole picture: how long ago the adverse credit occurred, whether it has been satisfied, the size of the debt, what your credit file looks like since then, and whether you have a deposit. A CCJ from 2018 that has been satisfied, combined with clean credit since, is a very different risk profile from a recent unsatisfied default.
Which lenders handle adverse credit van finance?
Specialist lenders with genuine appetite for adverse credit van finance include Propel Finance (100% LTV available), Acorn Vehicle Finance (may require security), Specialist Motor Finance (SMF), Blue Motor Finance (backed by Secure Trust Bank), and Aldermore Bank (from 6 months trading). Each has different criteria, rate ranges, and requirements.
How a broker helps adverse credit cases
If you apply direct to multiple lenders and are declined, each application leaves a hard search on your credit file, which can itself reduce your chances of approval from subsequent lenders. As your broker, we assess your situation first, identify the most appropriate lender, and submit one carefully prepared application - minimising credit file impact.