Car finance with a CCJ: is it possible?
A County Court Judgement (CCJ) can make it harder to be accepted for car finance. Learn more in our guide
)
What is a CCJ?
Car finance with a CCJ isn’t impossible, but first, it’s important to understand what these judgements are.
A County Court Judgement is a type of court order that may be filed against you if you have outstanding debts.
If the court decides you do owe money, you’ll receive a letter in the post detailing how much you owe, how to pay, payment deadline and who you’re paying.
These judgements exist in England, Wales and Northern Ireland and having one on your credit report will typically significantly lower your credit score.
Can I get car finance with a CCJ?
It’s usually much harder to get car finance with a CCJ, as lenders will see you as more of a risk.
Credit history is what shows a lender you can be trusted to repay what you’ll borrow. If you have a CCJ on your credit file, they'll see you’ve previously missed significant payments and the courts have had to intervene to recover the money owed.
Car finance with bad credit can be harder to come by, and a CCJ will usually mean your credit score has significantly declined.
You can expect a CCJ to stay on your credit report for six years, even if you pay it off within that time frame.
However, if you pay the full amount within one month of receiving your CCJ, you can get the judgment removed from the register.
There are brokers that work specifically with those who have poor credit and can offer car finance if you have a CCJ.
When it comes to car finance with cinch, our lenders will review each applicant on a case-by-case basis and will consider other factors relevant to the individual lending criteria.
Will a CCJ stop me from getting car finance?
A CCJ could stop you from getting car finance, but this will depend on the lender.
All lenders have their own criteria for offering finance and will typically be less likely to accept an applicant with a CCJ on their credit file.
There’s also the chance a lender could turn you down for car finance for another reason, but you’re unlikely to be told what that is.
It’s easy to assume the CCJ will be the root of all finance application issues – but it could be something else as simple as an address error on your application.
If you’re rejected for car finance, don’t blame the CCJ straight away. Make sure there are no other issues with your application before moving forward.
)
How to get car finance with a CCJ
Applying for car finance with a CCJ is the same process as any other car finance application.
The application process will usually start with you receiving a finance quote from a lender. You’ll then complete your application for car finance, providing details such as your address history and affordability.
You’ll have to wait to hear back from the finance provider to see if you’ve been accepted. You may be approved for finance, approved with conditions, rejected, or requested to provide more information.
If you’re accepted for car finance, you’ll then be able to start your monthly repayments and enjoy your new car.
Can I get car finance with bad credit and a CCJ?
Bad credit and CCJs usually go hand in hand. While it’s possible to have bad credit history and not have a CCJ, you’re very unlikely to have a desirable credit score with a CCJ on file.
As previously mentioned, it’s not impossible to get car finance with bad credit and a CCJ, but it can be much harder.
You may also find rates of interest are higher, so you’ll end up paying more for your car.