Obtaining Credit After a CCJ

Credit Cards & Loans

A CCJ will hinder your ability to get accepted for credit, as a CCJ on your credit file is a sign that you have had previous credit problems. This means that future creditors will be reluctant to lend you the money or may only do so at a higher interest rate.

Many people worry that having a CCJ means they are on the ‘credit blacklist’ and cannot get accepted for credit ever again, but this is not true. The longer ago a CCJ was issued, the less a prospective creditor will take account of it. They will also consider other factors, such as how much the CCJ for and whether it was satisfied or not.

CCJs which were for a lower amount of debt and were satisfied are less of a problem for many lenders. But your overall credit history and how much debt you owe now will also be taken into consideration.

Most lenders now have products that are specifically tailord to people who have experianced problems in the past. These products are designed to help you rebuild your credit rating. You will typically start off with a low credit limit but if you continue to maintain payments this will be reviewed and will gradually be increased.

If you have been issued with a CCJ in the past, it is important that you check the CCJ register to ensure that the details are accurate.

Mortgages

It is still possible to be accepted for a mortgage if you have a CCJ (County Court Judgment), as there are many mortgage lenders who specialist in helping those with a poor credit rating and offer products such as a CCJ Mortgage.

As you will be deemed as a higher lending risk by the mortgage lender, you should be aware that you are more likely to be paying a higher interest rate than normal.

With a mortgage you should be aware of the how long the redemption penalties will last, as you will probably want to remortgage in the future when the CCJ has gone from your credit file, and you don’t want to be unable to switch lenders for several years without paying a large fee.

If you are looking for a remortgage, then you might want to put this off until the CCJ is no longer on your record and you can show that you are responsible at handling credit, meaning that you are more likely to get accepted for a mortgage deal through a High Street lender.