What Is a Ccj and How Does It Affects an Individual Life?

A CCJ (County Court Judgment) highly impacts your finances. Find out everything about CCJ and how it affects a person who has received it.

Every person takes a loan to bear the expenses that cannot be met with their income. Moreover, due to unforeseen circumstances, most people fail to repay the mortgage amount they took. 

If a person continuously skips monthly repayments, he/she receives a County Court Judgment known as CCJ. As a result, individuals who receive the CCJ face challenges in meeting their financial needs and difficulties obtaining another loan in the future.

But people can obtain very bad credit CCJ loans from a direct lender even with a county court judgment. They can meet their inevitable expenses with these funds.

There is a bunch of something that is a component of CCJ.  This blog will focus on every detail of County Court Judgment—the way it works and how a person with CCJ should respond to it.

What is CCJ, and how does it impacts your finances and life?

A County Court Judgment (CCJ) is a type of order that a legal court sends to a person who is continuously failing to repay the owed money to the creditor.

Any lender has the right to reach out to the court for recovering money from the debtor. If you have received a CCJ, you have to respond to the order within the timeline mentioned on it. 

This CCJ letter will include:

• The total amount of money you owe
• Who is your creditor/lender of the loan
• Different fees that are associated with the mortgage
• The method of payment—one go or equated monthly instalment
• Deadline date to pay back the money

We will contain all this announcement in a county court claim. If you don’t respond to this claim within 2 weeks, you will get a CCJ.

How a CCJ affects a person’s credit score rating?

CCJ is considered a great financial mistake that can peal your credit score. Even if you successfully pay off all your debts, a County Court Judgment will stay on your financial history for at least 6 years.

Financial institutions gauge your credit report to accept your application for a loan or any credit card. If they find that you have a CCJ on your credit report, your mortgage application will get rejected then and there. This is because County Court Judgment indicates that lending you money is at higher risk.

Even if your credit score is at its best right now, once you receive a CCJ, your credit score rating will fall into the poor category. This is not healthy for your financial well-being.

It highly impacts your capability to take a mortgage in the future. But if you are in immediate need of cash, you can opt for very bad credit CCJ loans from a direct lender. They don’t examine your credit score before approving and disbursing funds.

Can you remove a CCJ from your financial report?

Yes, you can remove a CCJ from your credit report. For that, you need to contact CRAs (Credit References Agencies). 

To remove CCJ from your financial report, CRA will ask you to prove:

• You successfully repaid your debt within a month of getting a CCJ.
• The legal court cancelled your debt obligation after you raised the issue.
• Your insurance company was majorly accountable for it.

If you pay your debt within a calendar month, you can send a formal letter to the court to get a judgment on removing CCJ on your name. Lenders also assess your financial profile to check the CCJ status and check if you have paid your debt or not.

Who else can see the CCJ on your name?

The record of your CCJ is detained with the Registry Trust. Anyone who is searching your name for credit purposes can see it easily. It also includes banks, your landlord, lenders, referencing agencies, and employers.

Ways to improve your credit score after receiving a CCJ

The more your CCJ gets older, the more your credit score improves. You need to take care of one thing that is other ongoing debts. You have to keep managing it responsibly without skipping any repayments.

Given below are some ways to improve your credit score:

• Timely payment of all the bills
• Consider registering for electoral 
• Keep checking your finances regularly
• Consider lowering your credit usage
• Open new accounts only when you really require it
• Try clearing off all the ongoing debts

Make sure that you borrow money that can be repaid comfortably according to your affordability. If you don’t want to face an unpleasant situation like County Court Judgment, consider borrowing within your limits.

How can you avoid getting a CCJ?

The best way to avoid receiving a CCJ is by contacting your creditors and lending institutions. You should explain your situation and the reason for not being consistent with your repayments before they proceed to take legal action. 

If you are less communicative, the more are the chances of receiving a CCJ soon and vice versa. 

Summary of the blog

Dealing with finances with loads of debts is itself a big challenge. Additionally, if it gets coupled with a CCJ, the situation goes out of hand for many people. But there is no need to get stressed as there are several ways to handle it and avoid it in the future.

Receiving CCJ is good for your mental health and can also negatively impact your future capability for borrowing. Try getting in touch with your creditors if you are dealing with any financial crisis in your life. Make them understand your monetary condition to extend the date for the repayment.

If you have received a CCJ, that doesn’t mean you are ineligible for obtaining a mortgage in the future. You can apply for very bad credit CCJ loans from a direct lender to meet your everyday expenses during this tough time.