Requesting credit after bankruptcy

Hello,
Looking to build up my credit profile but had a question.

When I apply for credit for a car (relatively low value) - when they do the credit check does it tell them I have previously been bankrupt? Or is it a simple yes or no based on my score.
thank you
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  • luvchocolate
    luvchocolate Posts: 3,240
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    Hi..when was your bankruptcy?
  • MalMonroe
    MalMonroe Posts: 5,783
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    Hi, it will depend on when the bankruptcy ends. Bankruptcy stays on your credit file for six years and after that will drop off. Lenders cannot see your credit score. They base their decision on the details on your credit file. If they see a bankruptcy on there, they may say 'no'. 

    I had a Debt Relief Order (similar to bankruptcy) a few years ago and after it dropped off my credit report I was able to get car finance (like you, it was relatively low) with no difficulty. In fact, car finance was easier to obtain than a credit card at around that time. 
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • angie85
    angie85 Posts: 18
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    Thanks for the feedback

    That was my worry would they see a bankruptcy on the credit search. Reason I ask is I was reluctant to go to a car dealership locally as I live in a small town and didn't want the guys there finding out/telling people I know. So perhaps it's better to try another dealership a little further away.

    My bankruptcy was just 2 years ago so likely still on my file.
  • luvchocolate
    luvchocolate Posts: 3,240
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    It's on your file for 6 years 
  • angie85
    angie85 Posts: 18
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    Thanks all - sorry I should have been clearer with my question.

    If I go to a local car dealership, would the check from their side say I'd previously been bankrupt or would it be a yes/no based on my credit score?
  • luvchocolate
    luvchocolate Posts: 3,240
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    It will show on your credit report for them to see...I have no idea on their response 
  • sourcrates
    sourcrates Posts: 28,543
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    It shows on the "public information" section of your credit file.

    Anyone doing a credit check on you will see it.

    You will have next to no chance of being approved for any credit until the 6 years are up.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Sallyp2
    Sallyp2 Posts: 341
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    If you have a IVA or DRO it will stay on your file for 6 years and even after that, depending on the finance/job position, it may follow you around. I suspect you will have very little chance of getting a car loan/CC. To be honest even if you do get a low value loan, you may not get car insurance as one of the questions relates to solvency.
    You can but try
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  • cymruchris
    cymruchris Posts: 4,884
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    You will have next to no chance of being approved for any credit until the 6 years are up.
    It's very rare I'd disagree with you - very rare - but not being approved for any credit until the 6 years is up isn't really very accurate. Usually once discharged, with a regular monthly income, getting back on the wagon with a pay monthly sim card, ensuring the electoral roll is up to date and all the usual, it's normal that someone could get a sub-prime credit card from the likes of Vanquis/Aqua/Capital One. Using that properly, spending and paying off in full monthly, would mean that in due course (and before 6 years) they'd be able to take further credit such as car finance. They may not get the best rates - but they would be able to get it with all other things being stable. They may also be able to get credit that's secured on the car. Again that'd likely be an expensive option. 

    The best option would be to try and save a little and spend less on the car than they were planning so they have a runabout in the short term. 

    Sallyp2 said:
    you may not get car insurance as one of the questions relates to solvency.
    You can but try
    OP - There are some insurers that ask 'Have you been bankrupt in the last 6 years' - others that ask 'have you ever been bankrupt' - and others that don't ask anything at all. You'll get motor insurance - but you will have to pay very careful attention to the questions being asked, and don't just fly through ticking all the boxes like you might have done in the past, and find one that DOESN'T ask about your bankruptcy. Don't be tempted to lie - or rely on a comparison website and pretend you didn't notice. 
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • angie85
    angie85 Posts: 18
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    Thanks for all the responses 

    A relative has offered to be guarantor on the car loan - is that a good option as it would help build up my credit file or is it better if the guarantor takes out the loan solely in their name and adds me to the insurance?
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