CCJ Car Finance

Being handed a County Court Judgement (CCJ) is by no means a pleasant experience, and can certainly put 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 be 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, a legal order issued by a county court when someone fails to repay the money they owe.

When a CCJ is issued against an individual or business, it means the court has determined they owe a specific amount to a creditor and are legally required to repay it within an agreed timeframe.

StepChange is a free debt advice service, supporting those 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.

If paid after 30 days, you can request a "certificate of satisfaction," which doesn’t remove the CCJ from your credit file but can be useful to show you’ve settled the debt.

It’s important to address a CCJ promptly and seek legal advice if you receive one. If you don’t comply, creditors can take enforcement action, which may include 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 issue date. During this time, it will be visible to lenders and other organisations who check your credit history.

This can significantly impact your ability to obtain credit, such as loans, mortgages, or even rental agreements, as it indicates you’ve 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 it shows 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 lenders you’ve had difficulty repaying debts, which may make them more cautious about lending.

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 finance for individuals with adverse credit histories, including car finance for people with CCJs. They may be more willing to work with you, but often charge higher interest rates to offset the increased risk.

Larger Deposit: You might need to provide a larger upfront deposit to reduce the lender’s risk and improve your chances of approval.

Shorter Terms: Lenders may offer shorter loan terms to manage risk, which can result in higher monthly payments but help you rebuild your credit score.

Age and Status of the CCJ: Older and satisfied CCJs are generally viewed more favourably than recent or unsatisfied ones.

Number of CCJs: Having multiple CCJs can limit your options, but doesn’t automatically prevent approval.

Can I get car finance with an unsatisfied CCJ?

Getting car finance with an unsatisfied CCJ is more difficult, but some specialist lenders may still consider your application, especially if you can offer a larger deposit or other assurances.

Does the CCJ need to be removed from my credit file before I apply?

No. A CCJ stays on your credit file for six years, even if satisfied, so it doesn’t need to be removed before applying. Lenders will take into account how recent the CCJ is and whether it’s been satisfied when reviewing your application.

Will I need to provide extra paperwork if I have a CCJ?

Yes. You may be asked to provide proof that the CCJ has been settled or documentation of your current financial situation. Providing this information helps lenders assess your application more fairly.

Can I get car finance with a satisfied CCJ?

Yes. Obtaining finance is generally easier when your CCJ is satisfied.

Keeping your credit utilisation low and making timely payments on other debts can also demonstrate responsible financial behaviour to potential lenders.

How to get car finance with a CCJ

It’s a good idea to seek advice from a financial advisor or specialist lender who understands adverse credit situations and can provide tailored guidance.

At Stoneacre, we work with a panel of lenders specialising in car finance for those with CCJs and defaults, and we may be able to help you towards approval.

You can check your eligibility for free on our website, and our team will guide you through the rest of the process.

Every lender has different criteria, but our in-house finance team can discuss the options available and help you prepare the necessary documentation.

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

Important to note

Every car finance application leaves a footprint on your credit file. If you already have a CCJ, making multiple applications in a short period may reduce your chances of approval.

As a broker, we work to match you with lenders best suited to your situation, helping to minimise unnecessary credit checks and improve your chances of success.