How CCJs Affect Your Ability To Get Car Finance (ChooseMyCar)

If someone, be it a private individual or a company, feels you have debts that they require repayment for, they can apply for a country court judgement which, if the courts decide is valid and just, means you will be issued with one and forced to make good on those outstanding debts, and pay it back over a period of time. Like bankruptcy, these judgements affect your credit score for a significant amount of time – 6 years, in fact – and if you're looking at vehicle purchase, you will need to look for bad credit car finance options because when lenders undergo a routine check of your credit history, they'll see on your credit file that you have a CCJ against your name.

The effects of a CCJ on your credit report, and the subsequent poor credit rating it brings, can be broad and wide-ranging, therefore, it is vital to avoid getting into these kinds of credit issues in the first place. While the negative impact on your financial circumstances is apparent, the potential impact on your personal circumstances, your mental health, and general wellbeing are incentive enough to ensure your current situation doesn't result in you making monthly payments to people who are demanding money from you. In this post, we'll be looking at this topic and offer up some reasons as to why, despite your status, you may still be able to be a successful applicant, despite some obvious caveats.

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The Impact Of County Court Judgements On Car Finance

A County Court Judgement, like bankruptcy, is something that relates back to your credit rating. It is an indicator to a panel of lenders that you're someone who has, in the past, got into hot water when it comes to making payments on time and not having a sufficient debt management plan. This impact on your individual circumstances makes you a more risky person to lend to when both mainstream lenders, and specialist lenders, review your credit file because they can't guarantee that you'll be able to make good on the monthly repayments stated in the initial loan application.

While this sounds negative, and to an extent it is, it doesn't necessarily mean that your ability to get vehicle finance is over when applying to a range of lenders – there will just be more stipulations to your applications when compared to customers with better credit scores. One such stipulation may very well be the annual interest rates which will be added to your application, again, because you're more of a risk to lend to. Finance lenders, and people involved in the process, will want to put as many buffers in as possible to ensure they get their loans back, with interest. High-interest rates can be 'bad' but with proper budgeting, and knowing what it is you can afford, you're able to pay off loans even if the rates are high. If you're diligent and are able to meet the deadline for repayment, then this can go a long way to improving your credit profile – CCJ or not.

Can I Get A Vehicle With My Current Financial Situation?

Yes, in short, you can. A bad credit history, or bad credit rating, does not mean you're blocked from making applications for car finance. As we said, with effective budgeting, and proper planning, you can find a deal that works for your income and the finance company's priorities – despite poor credit scores. There are a couple of steps you can take to improve your record/chance of being accepted despite a poor credit profile.

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Applying for the electoral register is something that should be done immediately, and is a standard way of showcasing your input into society and as a person who is open to being found on records. The second thing is not to search or apply for lots of car finance applications at the same time, responsible lenders will feel nervous about accepting an application if they have seen you have applied for several in a month as this shows you're someone who is maybe not taking your time to sort out your finances, read the terms, and come up with a thorough decision.

(Disclaimer: This article is sponsored and hence promotes a link of commercial interest.)