A County Court Judgment (CCJ) is rarely welcome, especially if you're planning to buy a car. Even so, some lenders are willing to look beyond a past debt if your finances are in a stronger position today.
Get a clearer picture of car finance with bad credit and CCJ before you start the application process!
Yes, you may still be able to get car finance with a CCJ, as plenty of people buy a vehicle after receiving one. For many lenders, what has happened since the CCJ matters just as much as or even more than the judgment itself.
Because a CCJ indicates a higher level of credit risk, you may be offered a higher interest rate or more restrictive terms. This will depend on the lender, the status of the CCJ, your income, regular outgoings, employment stability, and the age, amount
For example, have you paid the judgment? Has your income become more stable? Are you now in a better position to keep up with monthly repayments? Those are the kinds of details many lenders want to understand before they decide whether to offer finance.
That also explains why two lenders can reach completely different decisions after looking at the same application. One may see too much risk, but another may be comfortable lending based on your current finances.
At Carplus, we first carry out a soft eligibility check and compare your application across our panel of lenders. A soft check does not affect your credit score and is not normally visible to other lenders as a credit application.
Applying for car finance with a CCJ is much like any other car finance application.
These estimates are subject to credit checks and may change when you apply for finance. this is for example purposes only
Maximum borrowable amount
Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Representative Hire purchase (HP) example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0, the amount payable would be £185.33 per month, with a total cost of credit of £4,119.81 and a total amount payable of £11,119.81. We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. We receive a fixed fee commission per finance agreement, or we receive a commission based on a percentage of the total amount of finance taken. This will not affect the interest rate offered or the total amount repayable. Our service is free.
A County Court Judgment (CCJ) is a court order issued in England, Wales, or Northern Ireland when someone fails to repay debt in the past, and the creditor takes the case to court. A CCJ can affect your chances of getting car finance, but paying it off may improve how some lenders view your application.
Strictly speaking, there is no official discharged CCJ status. The term is used to describe a judgment that has been paid, although the correct term is finance with a satisfied CCJ. If you're unsure what applies to you, check your credit report before you apply.
A County Court Judgment will leave a mark on your credit file, so it can make it harder to secure car finance for a while. But that doesn't tell the whole story.
Many lenders expect you to have occasional financial difficulties. What matters more is how you've managed your money since you received the CCJ.
If your finances are now under control and the repayments fit your budget, you may have more options than you think.
There isn't a checklist that decides every application, but there are several factors that carry more weight than others:
Rather than focusing only on your past, lenders also consider whether a car finance deal is affordable for you today, which gives you a fair chance of approval if your finances have recovered.
A car loan with CCJ isn't a separate type of finance.
Many applicants choose Hire Purchase (HP) because it's widely available and the vehicle acts as security until the agreement ends.
For many people, Hire Purchase (HP) is the most realistic option because the car acts as security until the agreement is paid in full. Depending on your credit history, some lenders may also offer Personal Contract Purchase (PCP), although these agreements have stricter lending criteria.
Some specialist lenders also consider people who have been declined elsewhere, although the finance offered may come with a higher interest rate than standard agreements.
Usually, yes, because it shows you’ve improved your debt management.
Paying a CCJ won't remove it from your credit record unless the full amount is cleared within one month of the judgment. Even so, a satisfied CCJ may increase your chances of securing car finance.
Yes, it is possible to get car finance with a CCJ and bad credit score at the same time, but be prepared for much higher interest rates and a smaller number of lenders to consider you. A bad credit history changes where you should look, rather than whether you should apply at all. Lenders that specialise in bad credit and offer tailored solutions are a better place to start if you're looking for bad credit CCJ car finance.
Yes, you may be able to get a CCJ car finance with a guarantor, but it isn't a requirement for most CCJ car finance applications.
If your income covers the repayments and the lender is comfortable with your current finances, you may be able to get a finance agreement in your own name. Guarantor car finance is simply one of multiple car finance solutions if additional support is needed.
A combination of CCJs and defaults tells lenders you may have had more than one credit problem, so expect more questions than in traditional finance situations.
That doesn't always lead to a rejection. Some lenders look just as closely at credit scores, income, and affordability as they do at older problems. If your finances have settled down since those missed payments, they could still approve your application.
There is no separate CCJ rulebook that decides who can and cannot get car finance. As usual, lenders examine at how your finances look today and whether taking on a new agreement makes sense based on your overall financial situation.
| To apply for car finance you need to | Requirements | Car must meet the following criteria: |
|---|---|---|
| Provide your full name, date of birth, and nationality | Be aged 18-75 years old | Cost between £4,000 and £40,000 |
| Share your recent address history | Pay an initial deposit if the lender requires one | Have no more than 120,000 miles on the clock |
| Confirm your employment status | Receive a monthly income of at least £1,000 | Be no older than 14 years at the end of the finance agreement |
| Show your income and regular monthly outgoings |
Compare and find the best car finance deals quickly and easily even with bad or poor credit. When comparing deals, you can also factor in the part-exchange value of your current car to reduce the overall cost.
Getting a finance quote with Carplus won't affect your credit score, but a hard search will be completed before completion of the deal
No-deposit car finance options are also available. Check your eligibility today with a soft search and find out what you qualify for.
Get your UK car finance decision in minutes. Check your eligibility first. Apply in confidence with Carplus
Having a CCJ doesn’t mean your car finance application will automatically be refused. Finance providers look at the bigger picture, including your income, existing commitments, payment history, and how your current finances look overall.
They will also consider when the CCJ was issued, whether you have cleared the debt, and if the monthly repayments would be realistic based on your budget.
Sometimes, but it depends on what happened with the judgment. If you pay the full amount within one month of the judgment date, you can apply to have it removed from the Register of Judgments.
If you clear the debt after this time, the CCJ can be marked as satisfied. It will still stay on your credit file for six years from the date it was issued.
A CCJ may also be removed if it was added by mistake or if the court agrees that it should be cancelled.
Not always, but it could help. By paying some money upfront, you reduce the amount you need to borrow, which makes the monthly repayments easier to manage.
It’s important to understand that a deposit works in your favour with some lenders, but it does not override the other checks they make before approving an application.
You can still apply for CCJ car finance. The lender will want to understand how your income works and whether you can keep up with the repayments. So, you’ll need to provide bank statements, tax returns, or proof of earnings to show your current financial profile.
