A County Court Judgment (CCJ) is a type of court order in the UK that can be issued against you if you fail to repay a debt. If you have a CCJ against you, it can negatively affect your credit rating and make it harder to obtain credit in the future.
There are steps you can take to remove a CCJ from your credit report once it has been discharged.
Guide
What is a County Court Judgment (CCJ)?
A County Court Judgment (CCJ) is a type of court order issued in England, Wales, and Northern Ireland by a County Court if you have failed to repay a debt.
The CCJ will state the amount you owe and how it should be paid back. If you do not pay the debt within 30 days of the CCJ being issued, it will be recorded on your credit file for six years, which could negatively affect your credit rating.
However, if you pay the debt in full within one month, the CCJ will not be recorded on your credit file. It’s important to take CCJs seriously, as they can have long-lasting effects on your credit history.
Is a CCJ a matter of public record?
Yes, a County Court Judgment (CCJ) is a matter of public record and can be viewed by anyone who conducts a search of the Register of Judgments, Orders, and Fines in England and Wales or the equivalent registers in Scotland and Northern Ireland
While a County Court Judgment (CCJ) is a matter of public record and can be viewed by anyone who conducts a search of the Register of Judgments, Orders, and Fines in England and Wales, in practice, only creditors and lenders are likely to find out about your CCJ. This is because they are the ones who typically conduct credit checks when you apply for credit.
If you pay the debt in full within one month of the CCJ being issued, it will not be recorded on your credit file. However, if you fail to pay or make arrangements to pay, the CCJ will remain on your credit file for six years, which could negatively affect your credit rating and ability to obtain credit in the future.
Where are details of County Court Judgments held?
Public Register of Judgments, Orders and Fines
Details of County Court Judgments (CCJs) are held in the Public Register of Judgments, Orders, and Fines in England and Wales, which is maintained by the Ministry of Justice.
This register is open to the public and can be searched by anyone who wants to check whether an individual or company has any CCJs against them.
Credit reference agencies
In addition to the public register, CCJs are also recorded by credit reference agencies in the UK, such as Equifax, Experian, and TransUnion.
These agencies collect information about individuals’ credit histories and use it to produce credit reports, which are used by lenders to assess creditworthiness.
If you have a CCJ, it will be recorded on your credit file for six years, which could negatively affect your credit rating and ability to obtain credit in the future.
How do you get rid of a CCJ?
If you have a County Court Judgment (CCJ), there are several ways you can get rid of it.
Repay the CCJ within 30 days
If you owe money and repay the full amount owed within one month of the CCJ being issued, it will not be recorded on your credit file.
However, you will still need to provide proof of payment to the court.
Repay the CCJ after 30 days
If you repay the CCJ after 30 days, it will remain on your credit record for six years, but the entry will be marked as “satisfied”.
This can still have an impact on your credit rating, but it may be less severe than an unsatisfied CCJ.
Apply to have the CCJ set aside
You can apply to have the CCJ set aside if you have a valid reason, such as not receiving the original claim form or not being able to attend the court hearing.
If the CCJ is set aside, it will be removed from your credit file.
It’s important to note that setting aside a CCJ can be a complex and costly process that might include paying a court fee in addition to legal costs, so it’s always best to seek legal advice before proceeding.
What does CCJ discharged mean?
A County Court Judgment (CCJ) is a court order instructing someone to repay their outstanding debt.
Creditors or lenders can get a CCJ on you if youfail to make paymentsor your payments go into default.
If you pay the full amount within a month, you can get the CCJ removed by applying to the court with evidence. In other words, you will be discharged from the CCJ.
If you take longer than a month to repay the full amount, then your CCJ will be marked as ‘Satisfied’ on the public register and it will show on your credit report.
You can get it marked as ‘Satisfied’ by applying to court.
If you’re struggling with debt and are facing being served with a CCJ you could use government legislation to stop creditor pressure andwrite off up to 90% unsecured debt
Can I still obtain credit with a CCJ on my credit file?
Having a County Court Judgment (CCJ) on your credit file can make it more difficult to obtain credit, as it indicates to lenders that you have failed to repay a debt in the past.
However, it is still possible to obtain credit even if you have a CCJ on your credit file.
Some lenders may be willing to lend to you, but they may charge higher interest rates or require a larger deposit or guarantor.
If you’re applying for a bank account, certain bank accounts may be available to you but with added restrictions, such as not allowing you to have an overdraft or offering limited services.
It’s important to note that having a CCJ on your credit file can limit your options and make it more difficult to obtain credit, so it’s always best to take steps to address the CCJ as soon as possible, such as paying the debt in full or applying to have the CCJ set aside.
How long does a CCJ stay on a credit report?
Generally speaking, aCCJ will stay on your credit reportfor 6 years. It will also show on the public register for the same 6 years.
As mentioned above, you can get your CCJ marked as ‘Satisfied’ to increase the chances of lenders lending to you.
Please also note, that the older a CCJ becomes the less attention most lenders will pay to it.
Please read this article for more information,What is a CCJ.
Will the credit reference agency know about my discharged CCJ?
If your County Court Judgment (CCJ) has been discharged, it means that you have satisfied the debt, and the CCJ has been removed from your credit report.
Once the CCJ has been removed, the credit reference agency will no longer have information about the CCJ on your credit file.
However, if you have a CCJ that has not been discharged, it will remain on your credit file for six years from the date it was issued, even if you have paid the debt.
During this time, the credit reference agency will have access to this information, which can negatively impact your credit rating and make it more difficult to obtain credit.
It’s important to regularly check your credit report and take steps to address any CCJs as soon as possible, such as paying the debt or applying to have the CCJ set aside, to minimise the impact on your credit rating.
How can I improve my credit rating after a CCJ?
If you have had a County Court Judgement (CCJ) against you, it can negatively impact your credit rating and make it more difficult to obtain credit in the future.
However, there are steps you can take to improve your credit rating:
Repay money on time and in full
Making timely repayments on any outstanding debts is one of the most effective ways to improve your credit rating.
This shows lenders that you are a responsible borrower who is able to manage their finances effectively.
Don’t close old credit accounts
Closing old credit accounts can have a negative impact on your credit rating, as it reduces your overall credit history.
Instead, keep your old credit accounts open and make sure you use them responsibly.
Join your local electoral roll
Being registered on the electoral roll at your current address can improve your credit rating, as it confirms your identity and makes it easier for lenders to verify your address.
Be wary of credit repair companies
Credit repair companies claim to be able to remove CCJs and other negative information from your credit file, but they often charge high fees and cannot guarantee results.
It’s best to avoid these companies and focus on improving your credit rating through responsible borrowing and repayments.
Improving your credit rating after a CCJ takes time and effort, but by taking these steps, you can demonstrate your creditworthiness to lenders and improve your chances of obtaining credit in the future.
