CCJ Car Finance

Being handed a County Court Judgement (CCJ) is by no means a pleasant experience, and can certainly put a stress on your future finances.

However, it's also not something that should stop you from living your life.

When it comes to car finance, having a CCJ can been seen as a bump in the road, but not something that will stop you from obtaining credit altogether.

What is a CCJ?

A CCJ stands for County Court Judgment, and is a legal order issued by a county court when someone fails to repay the money they owe.

When the court issues a CCJ against an individual or business, it means that the court has determined that they owe a specific amount of money to a creditor.

A debtor is then legally required to repay the specified amount within an agreed time frame.

StepChange is a free debt advice service. They provide support for people who have received a county court claim.

How long does a CCJ last?

If you pay the CCJ within 30 days, you can ask the court to remove it from the Register of Judgments, Orders, and Fines.

Meanwhile, if you pay it after 30 days, you can ask for a "certificate of satisfaction". This request does not remove the CCJ from your credit file, but it can be useful to show that you've settled your debts.

Always address a CCJ promptly and seek legal advice if you receive one. If you do not comply, creditors can enforce judgment, and this can have some serious repercussions.

CCJ enforcement can lead to legal action, including seizing your assets or arranging for money to be taken directly from your income.

How long does a CCJ stay on your credit file?

A CCJ will remain on your credit file for six years from the issued date. During this time, it will be visible to lenders and other organisations who check your credit history.

Your CCJ can significantly impact your ability to obtain credit, including loans, mortgages, and even some rental agreements, as it indicates that you have had financial difficulty in repaying debts in the past.

Fortunately, once you have paid off the debt, it will show as "satisfied" on your credit file. While the CCJ remains visible for six years, potential lenders may view it more favourably if it has been satisfied, as you have taken steps to address the debt.

Can I get car finance with a CCJ?

Yes, it is possible to get car finance with a CCJ on your file, but it can be more challenging.

A visible CCJ on your credit file shows that you have had difficulty repaying debts, which can make lenders more cautious about extending credit to you.

Here are some things to keep in mind if you're looking to get car finance with a CCJ:

Specialist Lenders: Some lenders specialise in providing finance to individuals with adverse credit histories, including car finance for people with CCJs. These lenders may be more willing to work with you, but they will often charge higher interest rates to compensate for the increased risk.

Larger Deposit: You may be required to provide a large upfront deposit to secure car finance with a CCJ - this can help to further reduce the lender's risk and improve your chances of approval.

Shorter Terms: Lenders may offer shorter terms for individuals with CCJs - this can help mitigate the risk and may result in higher monthly payments, but it can also help you rebuild your credit score.

Getting car finance with a satisfied CCJ

Obtaining credit for a car with a CCJ is much easier when it has been satisfied. A CCJ will stay on your credit file for six years, but you can take steps to improve your creditworthiness.

If you keep credit utilisation low and make timely payments on other debts, you will demonstrate financially responsible behaviour.

How to get car finance with a CCJ

It's advisable to seek help from a financial advisor or specialist lender who deals with individuals who have adverse credit histories. Such people can provide tailored advice based on your situation.

At Stoneacre, meanwhile, we work with a panel of lenders who specialise in car finance for those with CCJs and defaults, so we may be able to work towards car finance approval.

You can check your eligibility for free on our website, and our team will be in touch to help you through the rest of the process.

Remember, each lender will have their own criteria and policies, but our in-house finance team can discuss the options available to you.

Be prepared to provide thorough documentation about your financial situation, including details about the CCJ and any efforts you've made to address it.