How long does a CCJ stay on your credit file?

County court judgments (CCJs) affect credit scores. Find out how long they stay on your file in our jargon-free guide.



If you're over 18 and have used or applied for a financial product or service, you'll have a credit file, also known as a "credit report".

These files record your borrowing history and financial behaviour. They're created and managed by credit reference agencies (CRAs). In the UK, the main CRAs are Experian, Equifax and TransUnion.

When you apply for finance, whether for a car, house or any other big purchase, lenders will look at your credit file. This will affect their decision to lend the money you ask for.

Different things can affect your credit file. These include your payment history and the amount of debt you have.

Less common but no less important is a CCJ. If you've been issued a CCJ, it will negatively affect your credit file and stay there for six years.

This can make it more difficult for you to get a loan or finance. But it doesn't make it impossible, especially if you work with a bad credit car finance specialist like us.

What is a CCJ?

A CCJ is a county court judgment. This is a court order issued by the civil court in England, Wales or Northern Ireland. It formally confirms that you owe money to a creditor and sets out a deadline or repayment plan.

In Scotland, the court order is called a "decree" and is issued by the Sheriff Court.

How does a CCJ work?

Let's say you owe money to a bank, landlord or utility company. They will send you a letter of claim telling you what you owe.

Whenever possible, you should pay the full amount or come to a repayment agreement. If you can't, the creditor may take court action against you. If this happens, the court will issue a CCJ by post.

How long does it stay on your credit file?

The CCJ will stay on your credit file for six years unless you pay the full amount within one month.

Once paid, you need to write to the court to say you've paid, including proof of payment from the creditor.

If you pay after one month, the CCJ will be marked as "satisfied". Lenders will still see this on your credit file, but they'll also see that you've paid.

What should I do if I receive a CCJ?

As with most debts, the most important thing with a CCJ is not to ignore it. If you do, you could be taken to court and forced to pay the money back.

What you should do when you receive a CCJ depends on whether you actually owe the money or not. If you don't, you can apply for the judgment to be cancelled.

If you do owe the money, you'll need to pay it back in the way specified by the CCJ. This will tell you:

• How much you owe
• Whether you need to pay it in full or in instalments
• When you need to pay it by
  
  

If you can't pay back the money, you can ask to:

• Change the terms of the CCJ
• Pay it back in instalments
• Pay it back in different instalments to those specified in the document
  
  

For more detailed information about what to do if you receive a CCJ, take a look at the government website.

Can you get car finance with a CCJ?

Receiving a CCJ doesn't stop you from getting car finance. It does mean, however, that your options will be more limited than they would be for someone without a CCJ on their credit file.

Unfortunately, mainstream lenders are likely to see you as a high-risk borrower and refuse a loan or finance agreement. Specialist bad credit lenders, however, will look at other factors such as your income stability and current financial situation.

The passing of time helps. A CCJ issued a year or more ago looks less bad to lenders than one issued within the last year.

Even if you miss the initial deadline, a paid ("satisfied") CCJ shows lenders that you've taken steps to clear your debts.

You can also improve your chances of getting car finance with a CCJ by providing a larger deposit. That's because a larger deposit means the bank has to lend you less money, thereby reducing the risk they're taking.

But perhaps the best thing you can do is approach a specialist broker – one that, like us, focuses on providing finance to people with bad credit.

What else can affect your credit file?

Your credit file will mainly be affected by:

• Your payment history
• The amount of debt you owe
• How often you apply for new credit
  
  

All these details are considered by lenders when you ask them for a loan.

How can you improve your credit file?

Your credit file is a living document. Your present and future financial behaviour are just as important as your past.

This means you can improve your credit file in several ways. You can pay in full and on time. You can reduce your reliance on credit cards. And lenders will often look more favourably on people who have stayed at the same address for a long time.

You can also register on the electoral roll. This validates your identity and your address and has a positive effect on your credit score.

How we can help

If you have a CCJ or other negative marks on your credit file and are looking for car finance in Newcastle upon Tyne, we can help. We believe that bad credit shouldn't stop you from getting the car you need for work, family or personal use.

As an RAC Approved Dealer that adheres to the AA Cars Standard, we can promise a high-quality range of used cars.



We've helped thousands of people with bad credit in Newcastle and nearby get car finance. Could we help you, too? It's quick and easy to apply for finance online.