Can I apply for car finance if I have a CCJ?

What is a CCJ?

A CCJ is a court order that is given when money owed is not repaid. This is a type of judgement that can be given to you if you reside in England, Wales and Northern Ireland. Whether a CCJ is resolved or not, it can still affect your credit score, which can make it difficult to get finance, however, it is not impossible.

If you do get a CCJ placed against you, a letter of warning must’ve been sent to you beforehand to inform you that you have to repay the money that you owe otherwise they will proceed to take legal action.

There will be a deadline displayed for the repayment and this will have a clear outline of how much you owe and how to make the payments. These types of judgement can be kept on record for up to six years and even if you have repaid the owed amount, having a CCJ on your record can mean it can be more difficult to be granted approval for a car finance deal.

Who will my CCJ be visible too?

A CCJ is placed upon a public database known as the Register of Judgments, Orders and Fines. Your CCJ will stay on this database for six years and can be checked by anyone for a small fee. The amount of details they’ll be able to view is the name, address, the case, court number and amount owed. They will not be able to see who this money is owed to.

There are only 2 expectations of this and they include paying the money owed within a month of receiving the CCJ and if you were to dispute the CCJ and to show the courts that there was an error within the CCJ being presented. This would mean the CCJ is cancelled and would not be recorded.

Car Finance if i I have a CCJ

Can I get a CCJ removed from my credit report?

You can get CCJ’s removed by proving to three credit reference agencies that you have either paid the full amount owed within the month of it being issued, it’s been six years since the CCJ was received, it’s been disputed and cancelled or the insurance company was responsible for the money owed. This type of evidence should allow the CCJ to be removed from the register.

How can I avoid receiving a CCJ?

Repayments can sometimes become a struggle, but there are options in which can be put in place to help you. There are people like free debt advisors that can help explain the options that are available to you under your circumstances. This may include helping you make offers to your creditors. Usually, you can make arrangements that allow you to make affordable payments that can help you stay away from receiving court action.

Loan repayments should be paid on time and try to pay your debts off as early as possible if you can. This demonstrates to lenders out there that you are a sensible and reliable borrower. However if you are intending on using your savings to pay off your debts, ensure you leave yourself enough for emergencies.

Can I get car finance with a CCJ?

Having a CCJ means there maybe fewer options available to you but there are still possibilities. Having a CCJ affects your ability to get credit as some lenders are less likely to want to chance to lend you money as it is seen as a risk, but this does not mean finance is not available to you.

To give you the best chance possible, it would benefit looking for a specialist in bad credit car finance. There are a lot of lenders out there who sympathise with situations and understand that even though you have bad credit you can still be a good customer due to improved circumstances from past bad experiences.

To appeal to these types of lenders you may have to provide further details than usual. This is to ensure that you don’t present to much of a large risk. This information can include proof of income but this will differ depending on the lender and the information that they specifically require.

But there are ways in which you can help yourself and increase your chances of receiving car finance. You can do this in a variety of ways, all of which in time will give you a better credit. Things like paying off debts to show lenders that you are committed to paying them off. Also registering for the electoral roll can help you get approved.

Another way of helping you get approved is to introduce a guarantor. A guarantor is someone who can take the liability of the credit on the behalf of the person applying for it, this would mean they would be responsible for the debt if the lender fails to repay the repayments. The guarantor will have good credit and so together you can apply and will have an increased chance of being accepted.

So as shown here it isn’t impossible to get car finance with a CCJ. It just means you have to follow the correct paths to increase your chances of being approved.

Managing your budget

Managing your budget when you have had credit issues can be really important. Having a regular income means you can pay your debts off quicker, however, this could mean you need transport such as a car to get to work and earn. However, if you have a CCJ, your ability to get finance might less likely.

Having to manage a monthly budget can be very important yet difficult.  However, it does not mean it is impossible to be accepted for finance. Having a good monthly income and working with a company that can help ensure you get a deal that the payments are affordable for you to be able to repay comfortably. Explore our finance calculator here.

Here at The Car Finance Companies, we take into consideration your financial income on a monthly basis and whether you can afford the monthly payments. The aim is to sell you a car that you can afford to buy comfortably and that fits into your day to day life. We want you to have your dream car but be able to afford the repayments!

The Car Finance Companies provide you with a massive selection of used cars and vans. We are based in Liverpool, Merseyside but can deliver UK wide. Check out our stock range and give us a call on 0151 523 4000 to get started on getting that dream car today!