A CCJ or County Court Judgment is a court ruling for money. They are a registered entity with the Register of County Court Judgment and affect your credit. When you are unable to pay your creditors, a civil case proceeding can be started against you in the County Court. The court has the right to make a judgment against the debtor that will remain open until the debt is paid.
A CCJ loan can be managed very easily by simply paying it off. However, if you cannot afford to pay it at once then you may end up with a bad mark on your credit score. Though having a CCJ case will not hamper your ability to get credit, lenders consider it while assessing your application for a loan. A CCJ loan from a direct lender is offered despite a low credit.
The lender may view you as someone who was unable to meet the commitment in the past and therefore, this may show your inability to do so in the future. For this reason, it is important to remove CCJ from your record.
A CCJ loan is similar to another bad credit loan. The lender is at risk because in this case you have not paid your previous loan and a case is registered against you. This indicates that the lender is going to charge a higher rate of interest and fees. That means a CCJ loan is costly.
Prospective Borrowers
There are lenders who provide a loan to borrowers with a CCJ. If a person owns a home, their chance of getting a CCJ loan is very high. This is for the reason that they can use their home as security.
If your land has a lean against it, you will be unlikely to keep it as security.
Even though you don’t own a home or cannot use your home to secure the loan, there are CCJ loan options available for you. Lenders want to make sure that the people borrowing the money are able to pay them back. In this case, they will ask for documents to prove income and they would like to see a very consistent record of good earning.
But if you are unemployed, self-employed and have other sources of income that is not regular, then it can reduce your chance of getting a CCJ loan. This is because lenders are looking for someone with a good source of income that will ensure the person will not have any hardship repaying on time.
Impact on Your Credit Record
As we have discussed, a CCJ loan is going to charge a high rate of interest and it comes in the form of smaller loan due to high risk of loss involved in it. You are unlikely to make a large purchase through it. However, it is a good method to make your credit score better.
You can take a small CCJ loan and repay it as per terms and condition laid out by lenders, which will have a good impact on your credit. Then you can secure any type of loan in the future.
A CCJ loan might be the only option for someone with a CCJ. The best thing to do in this situation is to get a CCJ loan to complete your CCJ debt in one go.
Thus, this will not only improve your credit history but also your CCJ will be marked as satisfied in the registry. This will improve your credit and future borrowing also.
Having a CCJ was once the biggest hurdle on your ability to get a loan. However, the recent increase in the specialist CCJ lenders has made it easier to get the loan, albeit you have to pay an exorbitant rate of interest. It is important to know that even if you have more than one CCJ, it won’t stop you from taking a loan. In today’s market lenders have changed their conditions as per the demand.