CCJ (County Court Judgment)

Meaning and Definition

CCJ stands for County Court Judgment. It is a legal ruling issued by a county court in the United Kingdom against an individual or business who has failed to repay a debt. When someone receives a CCJ, it means that the court has determined that the debtor owes the money and specifies the repayment terms. CCJs have a significant impact on an individual's credit history and can affect their ability to obtain car finance.

Why it is important to know

Understanding CCJs is crucial when applying for car finance, as they indicate a history of debt repayment issues and can affect the borrower's creditworthiness. Lenders typically view CCJs as a negative factor, and having a CCJ on record may result in higher interest rates, stricter loan requirements, or even difficulty obtaining car finance altogether. It's important to be aware of any CCJs and take steps to address them, such as paying off the judgment or establishing a payment plan.

Example in car finance

Suppose an individual has a CCJ issued against them for unpaid credit card debt. When they apply for car finance, lenders will review their credit history and notice the CCJ. This may result in lenders considering the individual as a higher-risk borrower, leading to higher interest rates or limited loan options. It's important for the borrower to address the CCJ by fulfilling the repayment terms specified in the judgment or taking appropriate steps to rectify their credit history.