Having a CCJ can make it difficult to find lenders willing to approve a deal with you for car finance, mortgages and various other credit-related agreements. It’s imperative that you spend time educating yourself on what a CCJ is and how it can affect your chances of obtaining car finance before you apply.
What is a CCJ?
A County Court Judgement (CCJ) can be granted against you when you fail to repay any
debts that you owe. This is common practice across the UK and the following steps will be
completed before you are issued with one:
- Debtors will issue you with a warning letter declaring how much you owe them
- If you cannot afford to pay this back they will move on to legal action
- A judgement will be passed that details how much you owe and how you’ll need to
A CCJ will remain on your record for 6 years once it has been issued. This means that even
after you’ve paid off what you owe it can linger and make it difficult to get car finance or other
Can I get Car Finance with a CCJ?
At these times it’s even more important than usual to ensure that you have a regular income
and having a car could be key to this. We understand that everyone’s situation is different
and we’d encourage you to use our car finance calculator to see what you can afford.
If you have a CCJ and are interested in applying for car finance then we’re happy to help you
find the best option for you. Applying will allow you to find out your eligibility for car finance,
even with a CCJ. If you want to understand more about car finance for people with bad credit
or find out about IVAs check out our guide.
Managing your finances and avoiding a CCJ
While it’s best to pay off debt quickly it doesn’t stop many from struggling to meet debt
repayments. If you are one of those struggling we would recommend getting advice through
a reputable debt advisor. We’d recommend someone like the debt charity Step Change.
Often you can come to an agreement over a repayment plan without having to go through
Managing your finances efficiently and paying off your debts quickly and ideally early can
reflect very well on you. It shows lenders that you can budget effectively and are a sensible
Keeping a monthly budget is of utmost importance, especially if you’re considering entering a new credit agreement. You need to know your own finances and capabilities before you show lenders what you can offer.