Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Do CCJs affect your credit score?
So you have county court judgements (CCJs), and you’re worried they could show up on your credit report? Here are the facts.
If you ran into a sticky financial situation in the past and received a CCJ, this will appear on your credit report and remain there for up to six years.
But, what will this mean for your ability to be approved for a loan? In many cases, they’ll prove to be a major roadblock, but all hope is not lost.
Will CCJs appear on my credit file?
Your credit file is a visual representation of your borrowing history and how likely you are to be able to pay back loans in the future. A CCJ is an official court order for you to pay back money you owe. This arrives after several formal warnings have been ignored. This is the reason why they appear on your credit report, and are seen as a major red flag by any lender you apply to borrow money from in the future.
Will CCJs affect my chances of getting a loan?
CCJs can single-handedly ruin your credit score. Some lenders will flat-out refuse to deal with applicants who have a CCJ on their credit record, regardless of their other credit history.
If you need a loan in the first few years after you get a CCJ, it’s likely you’ll have to deal with lenders that specialise in offering loans to people with bad credit.
These include:
- Bad credit personal loans. The interest rates on these products tend to be higher than traditional personal loans, and the amount you can borrow is likely to be capped more strictly.
Bad credit personal loans - Credit-builder credit cards. These cards also contain unfavourable interest rates and low credit limits, but each time you successfully pay off your monthly balance on these cards, you can boost your credit score. As such, these products could be a good option if you have CCJs on your credit file.
Credit-builder credit cards - Payday loans. These are short-term loans designed to help people in an emergency. They have eye-wateringly high interest rates attached to them, and should therefore be considered only as a one-off last resort. These products are certainly not suitable for regular borrowing.
Payday and short-term instalment loans
Compare personal loans
Table: sorted by representative APR, promoted deals first
Late repayments can cause you serious money problems. See our debt help guides.
Tips
Do
- Search for lenders that specialise in offering loans to people with bad credit.
- Read minimum eligibility criteria before applying for a loan. Many lenders will flat-out refuse you if you have a CCJ.
- Look for the best deal likely to be available to you.
- Take continuous action to rebuild your credit score.
Don’t
- Apply for the best-rate loan products. It’s near-on possible to be approved for these with a CCJ.
- Make multiple applications for credit in a short amount of time. This will harm your credit score even further.
- Panic. There are still lenders out there who will serve you if you need them.
Gary's loan application and his credit score
After being dealt with a CCJ, Gary struggled to be approved for a mobile phone contract. He worked on rebuilding his credit score with a credit builder credit card. After a few months of successfully paying off his balance on this, as well as meeting other direct debits he had set up, he was able to successfully apply for a mobile phone contract.The bottom line
A CCJ is a big roadblock for people looking to borrow money, but there are products that will allow you to borrow money in this situation, while rebuilding your credit score at the same time.
Frequently asked questions
Read about how different factors can affect your score
G
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.
More guides on Finder
-
How to get a £200,000 loan
If you’re considering applying for a £200,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
-
How to get a £150,000 loan
If you’re considering applying for a £150,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
-
How to get a £100,000 loan
If you’re considering applying for a £100,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
-
The best balance transfer credit cards of 2020
Here’s how you can get the best deal on a balance transfer credit card, from finding the longest 0% periods to getting the lowest fees.
-
Starting a business with no money
This guide will help you successfully start a business – even if you currently have no money to fund it.
-
What is a lash lift: Everything you need to know
Sick of getting lash extensions? A lash lift will have you looking bright-eyed in no time. Here’s everything you need to know about them, including cost, safety and benefits.
-
Compare the best mortgage deals of October 2020
Everything you need to know about getting a cheap mortgage with the lowest rate and fees.
-
Compare current accounts
If you don’t feel like you’re getting much from your bank account, switching has never been easier! Banks and building societies offer up cash and vouchers when you switch, and will handle the boring bits for you.
-
Equity release options for under-55s
If you’re under 55 and can’t access products such as lifetime mortgages and home reversion plans, read our in-depth guide on ways to release equity from your home.
-
Fly Now Pay Later review: Pros, cons and costs
Is spreading the cost of your trip overseas with Fly Now Pay Later right for you? This guide includes a round-up of pros and cons and our expert verdict.
Ask an Expert