Do you have a County Court Judgement (CCJ) recorded against you? If so, you’ll want to know how long it’ll stay on your credit file. The short answer is that a CCJ will remain on your credit file for 6 years. While it’s there, it will affect your credit score.
If you’re not sure what to do about a CCJ then read on. We’ll explain more about what a CCJ is and what you can do about it.
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What is a CCJ?
A CCJ is a County Court Judgment that’s been lodged against you. This happens when a lender goes to court to try and get back any money you owe them.
If you’ve taken out a loan that you haven’t been able to pay back, the lender can get a court order. This can ask that you pay back what’s owed in full straight away. Once the CCJ has been issued, it’s recorded publicly on the Register of Judgments, Orders and Fines.
How Long Does a CCJ Stay on Your Credit File?
A CCJ will stay on your credit file for 6 years from the date the judgement was passed. While the CCJ is on your credit file you’ll find it hard to get credit. This is because lenders will see it when they do a credit check.
It suggests to them that there’s a greater risk you won’t pay them back.
The CCJ will remain on the public records for 6 years too. This is the Registry of Judgments, Orders and Fines. Anyone can look at the register if they pay a small fee. But not anyone can see your credit file. Only people or companies with a legitimate reason can look at your credit file.
What Should I Do if I Have Received a CCJ?
If you’ve received a County Court Judgement, it’s important you don’t ignore it. There’s a process that lenders have to follow before a judgement is made against you. The table below shows the steps they must take and what that means for you.
| The steps that take place with a CCJ | What this means for you |
| The lender will send you a letter with a claim form. | This is when the lender will try to come to an agreement with you on how you’re going to repay your debt. At this point you’re better off coming to an agreement with the lender to avoid getting the CCJ. You’ll have 30 days to respond to this request from the lender. |
| If you don’t respond to the claim form, the lender can go to court to recover their money. | The court will send you a county court claim form to complete. You’ll have 14 days to respond to this and send back the forms. Failure to respond will mean the court will decide how you pay back the debt without knowing your situation. |
| The CCJ is decided in court. | The court will decide how you’re going to pay back the debt. This will be either in full or in monthly instalments. The decision on how it’s paid back will depend on whether you provided any information. If you go to court, you’ll be able tell them how you want to pay it back. |
How Can I Remove a CCJ from My Credit File?
If you disagree with the lender’s claims, you can apply to the court to have the CCJ cancelled. This is known as having it set aside. When you do this, it stops the CCJ from being registered against you. It can be done for the following reasons:
- There were errors in the information the lender provided.
- You paid the outstanding amount in full before the court date.
- You paid the outstanding debt in full within 30 days after the court judgement date.
If you successfully have the CCJ set aside, it’ll be removed from your credit file and from the public register. If you can’t have the CCJ set aside it will be removed automatically when the six years is up.
What Happens if I Ignore a CCJ?
If you ignore a CCJ, the debt won’t go away, you’ll still have to repay it. The lender can take further action to recover their money. This could include the following action.
- They could send bailiffs round to your home. Bailiffs can take away items you own to the value of the debt.
- If you own your home, they could apply for a charging order on your property. This means the debt is secured against your property. If you don’t pay back the debt, the lender could repossess your home.
- The lender could apply to have money taken directly from your wages. This is known as an attachment of earnings order.
If you can’t afford the repayments, you can ask the court to let you make payments you can afford. You would do this by completing the ‘N245 form‘. Enter whatever you can afford on the form and the court will consider it.
If you’re struggling to repay a debt, then get help. There are organisations who can give you advice for free. These include Stepchange or the Moneyhelper service.
How Does a CCJ Affect My Credit Score?
A CCJ will likely have a significant impact on your credit score. It’ll make it harder for you to be approved for credit cards, loans like short term loans, payday loans, unsecured loans, or other types of borrowing.
And it’s not just lenders who’ll be able to see the CCJ. If you’re applying for a new mobile phone contract, they’ll check your credit file and see the CCJ. If you want to rent somewhere, the landlord can do a credit search and see it too. It could change the outcome of whether you get the mobile contract or rental property.
That’s why you should try to avoid getting a CCJ recorded against you if you can.
How Can I Improve My Credit Score After a CCJ?
If you’ve got a CCJ on your credit file, there are a few things you can do to help improve your credit score.
- One of the best ways to improve your credit score is to make all your payments on time or even repaying early, if possible. This doesn’t just include your monthly bills. It also includes any payments you agreed to as part of your CCJ.
- Try to reduce any debt you have. If you’re not borrowing up to your credit limits, it’ll help to improve your credit score. It shows you’re not desperate for money.
- If you’re not registered on the electoral roll then get on it. This can boost your credit score quickly.
- Keep a check on your credit file. By knowing what affects your credit score you can take positive action to stop anything hurting it. This is where credit monitoring services can help. They keep track of your credit score for you and will let you know if it changes.
Following these steps can help improve your credit score. It won’t change overnight, but in time they’ll help raise your score. And they’ll help to show lenders that you can be responsible with your money.
How Can I Avoid a CCJ?
There are things you can do to avoid a CCJ. Here are some tips for you to follow:
- The first step is to stay on top of your payments. If you’re struggling to make ends meet, speak to your creditors. It’s better to agree a payment plan before it gets to the stage of them taking you to court.
- If you’re already in the process of being taken to court, take action straight away. Respond to the lender before the judgement is issued. Give them the information they need so that you can come to an agreement and avoid the CCJ.
- If you’ve been issued with a CCJ, try and pay it off within 30 days of the judgement date. That way you can have it removed from your credit file.
- If you’ve had letters sent to you and you don’t know what to do, seek advice. Go to organisations like National Debtline. They’ll be able to help you for free.
By taking these steps, you can avoid a CCJ and keep your finances on track.
Can I Get a Loan or Credit Card With a CCJ?
If you have a CCJ, you can get a loan or credit card, but you’ll be limited with who you can get one from. There aren’t many lenders who are willing to lend to you with a CCJ. And those that do will charge high interest rates.
The place to start is with lenders who offer credit for people with bad credit. Credit builder cards might be a good option, but it’s best to check your eligibility first.
Final Words
A CCJ can have an impact on your credit score, but you can do something about it.
If you’re struggling to repay a debt, speak to the lender to find a solution. And if you’re worried about your credit score, there are steps you can take to improve it.
By looking after your credit score, you can get your finances back on track and avoid a CCJ in the future.
Disclaimer: We are not providing financial advice. These are just tips for informational purposes. Also, we are not affiliated to any of the external parties linked here, they are provided for reference only.