CCJ car finance

Having a CCJ can make it harder to be approved for car finance – but not impossible. You’ll need to understand what a CCJ is and how one can affect your ability to be approved for finance, whether you’re hoping to get HP car finance, PCP bad credit finance, or personal loan.

What is a CCJ?

A CCJ stands for County Court Judgment, which is a type of Judgment in England, Wales, and Northern Ireland that can be granted against you if you fail to repay any debts that you owe.

Can I get car finance with a CCJ?

While more difficult than usual, even with a CCJ, car finance is not an impossibility – you’ll just need to follow a few more steps, similarly to if you have an IVA or DMP.

The judgement is likely to have impacted your credit score in a negative way, but, fortunately, we work with a large panel of lenders to make poor credit finance accessible.

At Zuto, every CCJ car finance application is reviewed on an individual basis, taking all circumstances into account. Get in touch with our team today to discuss your circumstances, and we’ll give you an idea of how likely you are to be accepted and how you can boost your chances.

How do I find out if I have a CCJ?

Before you have a CCJ applied against your name, your debtors must issue you with a warning letter or default notice which should advise what you owe and how to repay. If this isn’t repaid, they will pursue legal action (in the form of a CCJ), and the Judgment will issue a deadline for repayment.

We’d recommend you look at any judgments against you on the Register of Judgements, which will cost £4. If the information on the register is incorrect, you can contact Trust Online, who will check the details with the court.

If you accept the judgement but aren’t currently in a position to make repayments, seek advice as soon as possible and make the court aware immediately. This demonstrates co-operation, and they’ll take your circumstances into account when issuing your deadline; ignoring warning letters won’t stop the CCJ from being issued, but it will prevent your circumstances from being taken into account.

How to check if I have a CCJ

If you don’t recall receiving a notice, the easiest way to find out if you have a CCJ against you is to request a copy of your credit report from a credit reference agency (i.e. Equifax, Experian, and TransUnion). You might have to pay a small fee for this report, but it’s worthwhile having visibility of your credit status.

Will a satisfied CCJ affect my credit when I apply for car finance?

Kept on record for six years, even after you have paid off the amount, it can be difficult to obtain car finance with a CCJ. However, paying the full amount of a CCJ within a month can get the judgment removed from the register entirely, and paying after a month can get the record marked as ‘satisfied’ (in each case, though, the default that led to the CCJ will still remain on your credit profile).

You need to contact the court and prove payment to get the record changed and an administration fee will apply, but a ‘satisfied’ payment is unlikely to impact your car finance application.

Another way to improve your chances of a successful car finance application is to improve your credit score. Simple tips include:

• Fix incorrect information on your credit report
• Make sure you are on the electoral roll
• Avoid making multiple credit applications in a short space of time
• Pay your bills on time

ZUTO TOP TIP

Applying with Zuto doesn’t impact your credit score. We use your details to search our large panel of lenders to find you the best deal we can. If you are accepted, and choose to proceed with the finance offer, then this will show up on your credit file.

Mike has worked at Zuto since 2018 and uses his experience within the industry to help customers understand the ins and outs of car finance.