A County Court Judgment (CCJ) is a court order in England, Wales and Northern Ireland registered against the borrower failed to repay borrowed money. CCJ is termed as County Court Summons also. The CCJ doesn’t come out of blue. Before this stage, the creditor sends a warning letter; if it is not responded, default notice is sent to inform you what need to repay; otherwise, legal action will be taken. According to the Consumer Credit Act, you must get default notice at least 14 days before taking any legal action by the credit agency. The default notice explains everything you need to know to repay the debt. It also includes the Financial Conduct Authority’s default information sheet. If you ever get CCJ, you must respond immediately to stop harsh judgments.
Reasons to get CCJ:
CCJ is obtained; therefore, it does not guarantee to get the payment back. In the UK High Court, 44 judgments (HCJs) were registered in Q1 2018. Almost 105,633 CCJ’s were registered against the businesses in England and Wales in 2017; these are 305 more than those in 2016. In Q1 2017, there were almost 298,901 CCJ registered against the consumers in England and Wales. For every 1,000 people in England and Wales, 5.16 borrowers receive the judgment. Getting CCJ may be because of many reasons, some of these may be justified, and some may not be. Most of the times, failures in debt repayment occurs because of:
- Negligence to responsibility of repayment; taking undue benefit of flexible repayment period term
- Financially undisciplined expenditure; buying the things/luxuries that you can’t afford
- Drop in monthly income like a jobless status, dull business season
- Long-term emergency expenses like illness
- Having more debts than affordable limit
- Mismanagement of debt repayment
CCJ and Credit History
Any CCJ is going to remain on credit history for 6 years. Can a lender take the risk of leading to a borrower having been issued CCJ? The reference of CCJ on credit history remains at least for six years. A CCJ would not leave the credit score in a good state; it may cost around 250 points. It means, once you get CCJ, you can’t get excellent credit score or fair credit score or even a decent to very poor credit score. All the borrowers getting CCJ permanently get default notice by a lender; it harms the credit report more than CCJ in a number of points. You lose at least 350 points for getting default notice. So, getting CCJ means the total loss of 600 credit score points which will ruin the credit history and rating for a long. As the financial mistake gets older, it loses its impact; and lenders don’t consider these bad entries as bad. For example, when a default notice is two years old, it affects the credit score only by 250 points; similarly, when it becomes 4 years old, it changes the credit score only by 200 points.
Six years is a long period to have CCJ damaging the credit report. Luckily, you can remove it earlier also by paying the CCJ in full within one month and then applying to an office of Registry of Judgments, Orders and Fines to remove your name from the register. If you pay the CCJ dues after the initial month, it is marked as ‘satisfied’ on the credit report. The ‘satisfied’ mark on credit report makes the borrowing in future easier.
Loans for CCJS and Bad Credit Score Borrowers:
Numbers of direct lenders entertain the loan applications with CCJ or bad credit score. Borrowing with bad credit history adversely affected by CCJ is practically possible, but the cost makes the borrower conscious. The high-interest rate and strict terms and conditions make the repayment a tough challenge especially when the inflation rate is rising, and the wages are not being improved accordingly. Expect to pay at least 49.4% APR. Also, you will be required to secure the loan either by providing guarantor or logbook. Getting the loans with CCJS and bad credit record from direct lenders is not a tough task, but repayment is indeed a tough challenge that makes the comparison of lenders and proposals more critical.
Secured loans for CCJS and bad credit score are available at UK Credit at 39.9% APR, 1 Plus 1 Loan at 47.8% APR, Guarantor My Loan at 48.9% APR, TrustTwo at 49.5% APR. Ocean Finance and Loans 2 Go also offer bad credit CCJ loans. Also, The Easy Loans too may be your choice to get CCJ personal loan. So, there are numbers of direct lenders ready to help you financially despite unfavourable credibility, but you need to plan better on the realistic ground with priorities.
Planning to Get CCJ Bad Credit Loan:
Perfect financial planning for bad credit ccj loans no guarantor direct lender delivers clarity in directions to justified and optimised funds usage. The commercial success with direct borrowing is just wishful thinking; until you have debt, you feel unrest because of repayment responsibility. This responsibility becomes more sensible to you after getting CCJ. High-interest rate, strict conditions, short repayment period, guarantor’s obligation, a possibility of dropped income etc. make the bad credit borrowing a complex challenge; you need to plan the best for getting the money and using it as a disciplined borrower. Following tips may help you get best rated bad credit CCJ loan from direct lenders in the UK:
- Review the existing funds you have as well as the debts /pending bills
- Review the objective with a prime focus to repair credit report
- Optimise the fund’s requirements
- Assess the repayment capability on realistic facts taking concern of all the probable odds
- Approach just to the FCA regulated specialist lenders dealing in CCJ loans
- Compare the offers by going through every clause
- Despite having CCJ, negotiate for the better deal
- Arrange a guarantor with an impressive financial record to get better interest rate offer
The best in world private lending industry of the UK provides ample opportunities to CCJ borrowers also to start life again with better finance management sense. The direct lenders take CCJ as the conditional development more than the carelessness in repayment; however, you should take it as the last chance to revive and regain social respect.