Car finance with a CCJ

CCJs can be very detrimental to your financial history and credit score, in some cases, even when you pay it off. But is it possible to get car finance with a CCJ? Yes, if you apply with Carplus, a CCJ’s effect on car finance can be minimised.

If you’re dealing with bad credit due to a CCJ, there is a suitable solution for you. So, worry not - we provide the best rates and find lenders with the most lenient terms. But it always helps to be as informed as possible, so read on for more information and its potential impact on credit.

Our CCJ car finance schemes are designed to help customers with bad credit scores, and we are committed to helping you find a plan that suits your specific financial circumstances. We will take into account factors such as your income and expenditure, employment status, and any other factors that could affect your ability to repay the loan. So, if you’re worried about your credit score and need car finance, apply with Carplus today.

What is a CCJ?

A CCJ (Country Court Judgment) is a court order that is issued in England, Wales, and Northern Ireland if you have failed to repay debts on time. Therefore, CCJs can be detrimental to your credit rating, as they serve as evidence of poor money management.

14 days before a CCJ is issued, the creditor is required to provide a forewarning letter. During this time, if you are able to settle the debt it will not be issued. If you are unable to do so, there is a 30-day window after the it comes into effect whereby if you settle the debt, it will not stay on your credit profile. Failure to do this will result in the CCJ staying on your credit record on the Register of Judgments, Orders and Fines for 6 years.

Can I get car finance with a CCJ?

In short, yes. Here at Carplus, we’re experts in securing car finance for those in a variety of financial situations, and we have a high success rate for securing car loans for individuals with CCJs and poor credit.

To get started with CCJ car finance, decide on the amount you’d like to borrow and how long you’d like your repayment period to last. You can use our car finance calculator to see the costs that you will incur on a monthly basis. Then, simply fill in our online application form.

Before we send your loan application on to our lenders, we perform a ‘soft search’ or ‘quotation search,’ which is a basic credit check that doesn’t affect your credit score. We assess your income and likelihood of making monthly repayments – this is crucial, especially if you’ve been issued with a CCJ.

Performing the soft search for CCJ car finance also gives us an indication of whether your application is likely to be successful and reduces the chances of it being rejected. A rejection of your formal application for car finance can be harmful to your credit rating.

Once this has been completed and we’re satisfied with the results, we’ll pass on your application to our panel of lenders, who will be in touch with you regarding your loan. In many cases, this will be within 24 hours of your first applying.

Can I get car finance with bad credit and a CCJ?

Yes, it is possible to get car finance with bad credit and a CCJ. However, it may be more challenging, and you may have limited options compared to someone with good credit.

When applying for car finance, lenders will check your credit score to assess your creditworthiness. If you have bad credit and a CCJ, it may indicate to lenders that you are a higher risk borrower, and they may be hesitant to approve your application.

That being said, there are lenders who may be willing to work with you and offer car finance options tailored to your circumstances. These lenders consider other factors such as your income, employment status, and affordability, in addition to your credit score, when making their decision.

At Carplus, we work with a panel of specialist lenders who offer car finance options for people with bad credit and CCJs. Our team of experts can help you find a car finance option that fits your budget and circumstances.

If you're interested in getting a quote, please fill out our online application form, and one of our representatives will get back to you shortly. Don't let bad credit and a CCJ stand in the way of owning a car. Contact us today to see how we can help you!

Will CCJ car finance impact my credit score?

If your credit report is tarnished by CCJs, IVAs, or defaults, taking out car finance with a CCJ can actually be a useful way to help you improve a bad credit rating. We will only perform a ‘soft search’ on your credit file once we receive your application, which boosts the chance of a successful application and won’t impact your credit score at all. Once you’re on board with us and making regular monthly repayments, lenders will then be able to see that you’ve borrowed responsibly, and your credit score will improve. Our car finance schemes are also ideal for those trying to fix their credit with the help of a debt management plan or for those seeking car finance with a CCJ. And best of all, you’ll never be charged for applying.

To get started, simply decide how much you’d like to borrow and the desired length of your repayment period. Scroll up to use our car finance calculator and see a breakdown of the monthly costs of your chosen plan before applying for car finance with a ccj and default.

How long is a CCJ registered against you?

A CCJ is recorded on the public register and will remain there for 6 years from the date of judgment.

If you’re not sure about the exact date, there is a database called the Register of Judgments, Orders and Fines that you can look up. It is operated and updated by the Registry Trust based on courts’ decisions in the UK. Here are some of the useful details you can find on the register:

• Date of the judgment debt
• Amount of debt
• Claim number

During the 6 years that the CCJ stays on your credit record, anyone can check the register, including lenders. After 6 years, the information is removed.

How to get car finance with a CCJ

The problem is not whether you can actually get car finance with a CCJ, but rather if you can get in on favourable terms. The truth is, you’re likely to receive higher quotes compared to a mainstream car finance agreement.

Because of higher rates, you’ll need to spend more time searching through lenders. With our algorithm, it won’t be an issue, but be prepared to look through multiple offers until you find the one you can afford.

Before you submit your application for a bad credit ccj car finance, make sure to provide everything they ask for. Do thorough research beforehand. Otherwise, it can be declined, incurring further negative consequences for your credit score. Each lender will have slightly different requirements, but most of them will ask for more information than usual. With extra information, they’ll try to determine if you pose too much of a risk, or they can approve the request despite a CCJ and troubles with poor credit score.

Consider adding a third-party guarantor to your credit application. This is someone that agrees to guarantee the car finance repayments for you, the borrower, thus increasing your chances of approval for car finance with a ccj. They have to be financially responsible and add to your credibility. However, it’s a big step, and both of you need to approach the matter responsibly. Carplus also offers guarantor car finance for someone looking for that option/

How to avoid a CCJ?

The first and most effective option is to reach an agreement with the creditor. For this, you may need help from a credit advisor that can communicate and negotiate a condition to stop legal action. If the issue hasn’t reached the court yet, this is the most crucial time to cooperate.

If you and your credit advisor decided to dispute the claim, you need to clearly state:

• With what parts of the claim you agree and don’t agree;
• Whether you’re disputing all of the debt or a part of it;
• How you would like to sort this matter out;
• Whether you agree to the suggestion of the creditor;
• Your further intentions (such as issuing your own claim).

After you receive the letter of claim, you and your credit advisor have 30 days to come back with a reply.

It’s not recommended to come across as aggressive if you want to convince creditors to put an arrangement in place. With the right approach, you can at least suspend your payment for some breathing room. Alternatively, the creditor can lower the payment or freeze any interest and charges as long as you continue to pay the amounts you're suggesting.

Ways to improve your credit file after a CCJ

Building a good credit score is important at any time. There are some things that will help you reduce the impact of a CCJ on your credit, over time, but these recommendations would be useful for anyone with bad credit:

1. Register at your current address on the electoral roll;
2. Keep up with all your payments and credit agreements;
3. Add evidence of keeping up with rent payments and disclose some open banking data (outgoings and income);
4. Make sure your credit report is accurate;
5. Don’t shop around for auto loans over a short period of time; keep them at least three months apart;
6. Stay below 30% of credit utilisation;
7. Manage your budget, only borrow what you can afford.

We help get car finance with CCJs and defaults

We can tell you that having CCJs and defaults on your credit report can make it more difficult to get approved for car finance. However, it's not impossible. There are lenders who specialize in providing car finance to individuals with poor credit history.

These lenders will take into account various factors, including the amount of the CCJ or default, how long ago it occurred, and your current financial situation. It's important to note that having a CCJ or default may result in higher interest rates and stricter repayment terms.

At Carplus, we work with a range of lenders who offer car finance to individuals with bad credit. We understand that everyone's situation is different, so we'll work with you to find a lender that can provide you with the best possible car finance deal based on your individual circumstances.

If you're interested in finding out more about car finance with CCJs and defaults, we encourage you to get in touch with us for a no-obligation quote. Our team of experienced car finance experts is standing by to help you get behind the wheel of your dream car.

Why choose Carplus for CCJ car finance?

Getting a car loan is complicated, let alone when you have bad credit. But it doesn’t mean you have to give up:

• At Carplus, we know how to help you get a loan on the best terms possible, bad credit car finance included.
• We deal with cases and credit issues that seem barely solvable.
• Find help with various types of car financing for different locations and vehicles.
• Get an accurate quote that does not put you under any obligations.
• Get a free consultation on any day of the week.

When financial issues pile on, it can be hard to finally take action. At Carplus, we try to eliminate the stress of sorting through dozens of lenders, trying to find the best CCJ or bad credit car finance deals. With this burden lifted off your shoulders, you won’t lose sight of your credit and get a car that you deserve and can afford.