If you have a County Court Judgement (CCJ) registered against your name, you might be considering if it will negatively affect your ability to get car finance. If you’re asking yourself how to get car finance with a CCJ, the good news is that it won’t rule out the possibility of your application being successful, but you need to change the status of your judgement on the record or get it removed.
How long is a CCJ registered against you?
If you want to apply for car finance and have a CCJ registered against you, it’s important to understand how they work. A CCJ will be registered against your name on the Register of Judgements, Orders and Fines for a term of six years.
When you incurred the CCJ will have a direct impact on whether your application for a car finance agreement is affected. It’s important that you know the dates of your CCJ to determine if it will be relevant in any decisions made regarding you receiving finance.
Paying money owed on a CCJ
If you’ve settled the total amount owed from a CCJ within a month, you can have the judgement against you removed from the Register of Judgements and Fines.
If you have not managed to make payment within the month, it is still possible to get the status of your CCJ altered in the record. By paying after a month, you can have the record marked with “satisfied” within the register.
To get the record altered in this way, you need to get in touch with the court, supplying proof of your payment settling the CCJ. For this service of changing your record, the court will charge you an administration fee for handling the matter. This is usually around £15.
Finance company checks of your personal history
When the finance company comes to look up your personal history, the CCJ will not show up if you paid within one month and it has been removed. If you paid later than a month but contacted the court to have your record marked “satisfied”, the lender will see you have had a CCJ but it will not stand against your application for car finance.
Always remember that even if you have paid your CCJ, if the payment was made outside of a month, you still need to contact the court, prove payment to them, and have your record marked “satisfied” in the register of Judgements and Fines. This will avoid the CCJ having a negative impact on your application for a car finance agreement.
Saving a deposit
If you currently have a poor credit score or have had problems in the past obtaining credit, there are some measures you can take to boost your chances.
Before applying for finance from lenders, try whenever possible to put money for a deposit to one side. Even a seemingly small amount could make the difference between you being accepted for car finance or turned down. By being able to offer a deposit, you can reduce the size of your monthly payments and this increases your personal affordability to the lender or dealership providing finance.
Having a deposit can also assist you in obtaining an improved interest rate for your borrowing.
Qualified assistance on your side
At Car.co.uk, we understand that having a poor credit history or a CCJ can cause difficulties when trying to acquire a car finance agreement. We have access to a range of lenders who specialise in offering finance solutions for a variety of different circumstances. It’s our goal to advise and support consumers across the UK in all matters regarding car finance.