Can I get a loan if I've got a CCJ?

How does a CCJ affect your chances of being accepted for a loan? How long will it show on your credit history? These are typical questions when it comes to applying for finance when you have received a County Court Judgement. Read our guide below to find out more. 

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“Our guide will walk you through how a CCJ affects your chances of being accepted for credit...”

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Will I be able to get finance?

Money worries play on everyone’s mind at some time or another, but if problems with debt have spiralled to the point of a County Court Judgement (CCJ) being issued against you, it can be even more stressful. Not only will you worry about how this will affect your situation right now, but also about the impact it will have on your finances in the future.

And what if you need to borrow more during this time? Our guide will walk you through how a CCJ affects your chances of being accepted for credit and what your options are. 

“In Scotland, a CCJ is referred to as ‘enforcing a debt by diligence’...”

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What is a CCJ?

A CCJ is a court order that’s registered against you if you fail to repay your debts and you live in England, Wales or Northern Ireland.  The order sets out how much you owe, how the money should be repaid and by when. If you owe money and fall behind with your repayments, you should contact your lenders to explain the situation or respond to their attempts to contact you. If you fail to come to an agreement with them, you could find yourself issued with a CCJ.

Actually, receiving a CCJ shouldn’t come as much of a surprise as you will be sent a warning letter by your lender first. If you get one of these letters, you should seek debt advice – a professional will be able to help you respond to the claim and let the court know about your circumstances.

In Scotland, a CCJ is referred to as ‘enforcing a debt by diligence’ and is dealt with by the Sheriff Court. 

“Receiving a CCJ isn’t the end of the world for your finances...”

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How will a CCJ affect you?

If you don’t pay off your CCJ in full within 30 days of receiving it, the order will show up on your credit history for six years. It will also be noted down on a database called the Register of Judgements, Orders and Fines, and will stay on there for six years as well.

Should you later apply for credit like a mortgage or loan, the lender will be able to see this information and use it to inform their decision on whether or not to lend to you. Because of this, you may find it very difficult to get a mortgage, credit card or even a bank account during this time.

However, receiving a CCJ isn’t the end of the world for your finances – although it will make things difficult for a while. If you pay back everything listed in the CCJ within one month of it being issued, you can request that the judgement is removed from your credit history. And if you pay it a month or more after the date of issue, the judgement should be updated to ‘satisfied’. So, while the CCJ will remain on the Register for six years, lenders will be able to see that you’ve repaid the debt and the issue has been resolved.

A CCJ may not only affect your ability to borrow, though. Some employers run credit checks on job applicants – particularly in certain industries, like the finance sector – and will be able to see your CCJ. This doesn’t necessarily mean that you won’t be able to get a job if you have a CCJ, but it might make it more difficult for you to find work in certain industries. 

Still want to know more? You can find part 2 of our guide here. Alternatively, you can find more information on our CCJ loans page

Personal loans

  • Easy to apply
  • Loans for almost any purpose
  • Quick decisions
Find out more

Homeowner loans

  • Borrow £10,000 to £250,000
  • We compare over 100 loans to find you the best deal
  • Getting a quote won't affect yout credit score
Find out more