Refused Car Finance are committed to helping people with different circumstances get car finance. One factor that may affect your chances of getting approved is having a CCJ. It’s not impossible to get accepted for CCJ car finance but it can be a little trickier. Our team of car finance exerts deal with bad credit car finance applications every day and help people with CCJs get approved! Thinking of applying for CCJ car finance? Here’s a few things you should know first…
What is a CCJ?
If you have a CCJ then you will more than likely know what one is, so we’ll keep it short! A County Court Judgement (CCJ) is a type court order which is issued when you can’t pay back money that you owe. If you can’t pay back debts to your creditor such as a lender of credit or finance, they can apply for a CCJ against you if they think you won’t pay back money that you owe, this is usually after a few missed payments or no contact. A court will then have to agree with your creditor, and you will be told to pay your debt back.
Having a CCJ can seriously affect your credit score and can stay on your credit file for up to 6 years! A CCJ can decrease your credit score and can even stay on your credit file after you have paid off the debt in full. If your CCJ is paid in full then your credit score can improve in the future as long as you continue to keep up with all your repayments.
How to get car finance with a CCJ?
CCJ car finance can be difficult but it’s not impossible it just means that you usually have less options. A few factors relating to your CCJ that can affect your chances include how long ago it was issued, how much you owe and how much you’ve already repaid. However, Refused Car Finance have a range of lenders who can help people with CCJs. When you apply with us, we only perform a soft search on your credit which will not be recorded on your credit file and doesn’t harm your current score. If you are worried about applying for finance, we are a bad credit car finance specialist and you will be assigned your own personal CCJ car finance expert who will match you up with the most appropriate lender!
If you are struggling to get approved on your own, you could also consider car finance with a guarantor. Having a guarantor can increase your chances of getting approved as it gives lenders more confidence that the loan will be paid back. Your guarantor is expected to meet the repayments if you are unable to meet the deadline each month. Find out more about guarantor car finance.
How can I improve my credit score after a CCJ?
When you pay back your CCJ in full, it will be marked on your credit file but can stay on for the duration. A CCJ does affect your credit score but there are a few things you can do to increase your score in the meantime.
- Make all your repayments on time and in full. One of the best ways you can increase your credit score in a few months and naturally is to keep up with your repayments. If you’ve had trouble making repayments in the past and have ended up with a CCJ then you will know how it impacts your score and hopefully you will not want another one! You should stick to the terms of your CCJ agreement to pay back your debts and also keep up with any other finance.
- You could also register on the electoral roll as lenders can use to verify that you are who you say you are and reduce the number of any fraudulent applications.
- Don’t apply to multiple car finance companies. If you make multiple applications for car finance in a short space of time, it can be recorded on your credit file if they are hard searches. This can have a negative impact on your credit score as it implies that you are desperate for credit.
Ready to start?
Do you have a CCJ and are looking for finance? Apply with us today and our team will match you up with the most suitable lender!