Having a CCJ (County Court Judgement) against you makes it a lot harder for you to secure finance, loans and credit, which can be incredibly frustrating.
The good news is you can still receive car finance with a CCJ – if you ask the right lender.
Understanding what a CCJ is and how it affects your chances of being approved for car finance are the first step of getting your dream car.
A CCJ is a County Court Judgement that exists in the UK that can be granted against you if you have failed to repay any credit or debts that you owe.
Fortunately, debtors have to issue you with a warning letter telling you to repay what you owe before they will pursue applying a CCJ against your name. So it won’t come as a surprise.
CCJs remain on record for six years, even after you have paid off the amount owed, and can make it difficult for you to obtain car finance and other kinds of loans or credit.
To check if you have a CCJ or any other judgements you might have against you, gov.uk has lots of useful advice.
Can I get car finance with a CCJ?
Imagine being without a car for six years and how that could affect your work and personal life. We realise how damaging this could be and the good news is that some lenders are prepared to approve finance when a CCJ is in its fourth year instead of its sixth.
Here at Albion Car Finance, we’re experts in providing car finance for those with a CCJ or bad credit and want to help you, even if you have been refused a car loan in the past.
As a specialist lender we can approve car or van finance if you have a CCJ, or if you are:
- In part-time work
- In arrears with their mortgage
- Surviving on State Benefits
How to avoid receiving a CCJ
The main issue with a CCJ is that it remains on file for up to six years, even after you have paid off the debt, which can make credit difficult to secure over that time. There are ways to avoid receiving a CCJ before it can damage your chances of securing car finance.
One of your best options is to speak to a free debt advisor. They can help you come to an arrangement with your creditors that can avoid court action.
If you are unable to prevent receiving a CCJ, you can remove it from the register if you are able to clear the debt within the first 30 days of the CCJ being issued.
How to apply for a vehicle finance loan with a CCJ
So now you know that your CCJ isn’t necessarily holding you back from receiving a car loan to get you back on the road, you can seek out your car finance options.