Extramile Finance

You are not alone. Many individuals are facing the consequences of County Court Judgment, also known as CCJ. Does it mean no chance of borrowing money? You should understand that it is well a possibility to borrow money even if you have a judgment against your name.

Another reality can be a bit of a challenge, as CCJ negatively affects your credit score. What’s the reason behind it? It is an obvious one, i.e. lenders will consider you as a high-risk borrower.

Still, worrying is not the solution. A few specialist lenders out there in the UK offer CCJ loans with no guarantor, no hefty paperwork and several benefits. A direct lender may be the wise choice in this regard. It can accept loan requests on other factors like individual affordability, recent repayment history, current monthly income and stability in employment.

Understand County Court Judgment (CCJ) and its impact

A CCJ (County Court Judgment) in the outcome of a legal order issued in England, Wales and Northern Ireland. The Courts issue it after finding that you owe money to a lender but missed or defaulted on the payments. It is also issued when you continuously ignore the court proceedings.

It has two major impacts:

1. It remains on your credit record for 6 years if the payment is unpaid within a month. It is even if you pay instantly, you stay as a high-risk borrower for the lenders.
2. The impact of CCJ is also on loan applications, insurance, or mortgages. It has an effect on employment opportunities as well.

Is it wise to borrow money with CCJ?

Borrowing money despite the court judgment can have advantages and disadvantages. Let us understand them in detail below:

Advantages

• Rebuilding your credit score is vital, and therefore, you need to repay the pending loan repayment promptly. It will help you regain control over your credit record.
• During financial emergencies, this option is quite beneficial as your need is genuine, and the lender can understand your compulsions for this. You can also consolidate your debts.

Disadvantages:

• When you go out to borrow money, you will find interest rates or APRs quite higher than in usual conditions.
• The terms and conditions will be quite strict. This is particularly true when you have applied for a secured loan for CCJ. If you default, you straightway lose your asset.
• There will be limited borrowing opportunities, and most lenders feel it is risky to fund individuals with CCJ issues.

How can I handle existing CCJ?

There are multiple ways to handle County Court Judgment issues against your name. Here are the experts’ suggestions:

• Make the payment within a month: You have a period of 30 days to make the payment for which the order was issued. By doing this, you can remove your name from the judgment. If you don’t do so, it will keep haunting your financial progress.
• Mark as ‘Satisfied’: If you make all the payments within a month, it will be updated with the status of ‘Satisfied’ in the court register. It will help you to enhance your creditworthiness.
• Ask for cancelling judgment: If there are incorrect forms or you have other valid reasons, you can apply for cancelling the judgment.

What are the challenges in borrowing money with CCJ?

Having a CCJ against your name is indeed a big dent in your financial record. Therefore, you have many challenges to face, such as:

• Lenders will consider you a high-risk borrower. Consequently, they may agree to fund your needs but at higher interest rates;
• You need to search hard to find out the relevant loan deal. Options are very limited, and perhaps direct lenders are the right choice;
• Lenders will ask for you to provide a personal guarantee or secure the loan with an asset, which you have to arrange;
• You have to give proof of stable monthly income. Besides, your current repayment behaviour should be accurate.

What are the loan options do I have to borrow money with CCJ?

Despite limited borrowing options, you can still have a few loans to avail of despite CCJ. Here are a few of them:

• Specialised CCJ loan deals: Some lenders focus on providing loans to people with CCJs. However, these will be high-interest rate loans because of the excessive risk.
• Guarantor loans: These are guarantor-backed loans where the applicant has to involve a guarantor with a good credit score or a homeowner to make the loan application stronger. The guarantor’s presence reduces the risk, and loan approval will be there.
• Secured loans: These are collateral-based loans where the borrower has to secure the borrowing amount with an asset, like property, vehicle or any valuable asset.
• Loans for bad credit: These are also the specialised funding products available for those with lower credit profiles. You can use them as credit builder loans because the approval can be there based on individual affordability.
• Doorstep loans: You can also look for the deals available on doorstep loans like provident no credit check upfront. These help get funds to your doorstep with no hard credit inquiry.
• Payday loans: These are also high-interest rate loans but are easily available for a small amount. You borrow a small lump sum amount and repay it on your next salary day.

How do I improve my chances of borrowing money with CCJ?

You need to borrow money, but CCJ is coming your way. You can still get a chance to work on these aspects:

• Influence lenders by paying off all the debts and getting a ‘satisfied’ status on your judgment.
• Your current financial stability is vital, and it should include regular and steady income, timely payments, and no pending debt.
• Check your credit score before applying for a loan. You can approach a credit reference agency and dispute errors if there are any.
• While you are on CCJ, try avoiding too many credit checks, moving home or switching employment.
• Stick to your actual needs and decide on an affordable loan term. Lenders like Extramilefinance offer only the affordable loan amount. 

Conclusion

If you have a County Court Judgment against your name, it does not mean that you cannot borrow money. You have opportunities to explore, but it requires cautious planning and preparation.

Explore specialised loan options, show financial responsibility, and research a lot. With these practices, you can face any challenge and make informed decisions while borrowing money with CCJ.