A CCJ is a county court judgement, a ruling from court that you have to discharge the debt. a CCJ is issued by the court when you fail or refuse to pay off the debt. Once the matter is taken to court, you will be required to settle the debt as per the order of the court. A CCJ appears on a credit report for up to six years. However, you can forestall it by discharging the whole debt in full within a month from the date of a CCJ issuance. It records satisfied if the obligation is met as per the court’s order and unsatisfied otherwise.

A CCJ drastically lowers your credit points. You will more likely fall into a very poor credit score range. Once your credit rating is very low, you will not be able to qualify for any loan down the line. If any lender approbates your application, they will charge very high interest rates.

Experts enjoin that you must avoid having a CCJ. Unless this is removed from your credit report, you will not see any improvement in your credit score. When the credit score becomes too low, it becomes too difficult to become eligible for a loan.

However, it does not insinuate that it is implausible to borrow money. The period of six years is too long. If you come across financial emergencies and your savings are not enough, how would you borrow money? How would you meet those expenses without borrowing money? Well, here are some tips for borrowing money with a CCJ.

• Choose an appropriate lender

First off, not all lenders offer money to very bad credit applicants. Every time you apply for a loan, a hard credit check is run. Hard inquiries appear on your credit report and they further damage your credit points. If you apply to a lender who does not accept applications from extremely subprime borrowers, this will result in repudiation and a credit score loss. At this time, you need to ensure that your credit rating is not hurt only because of rejection.

Therefore, you must carefully research the market to pick lenders who provide loans with a CCJ. Loans with a CCJ are emergency loans. They are also known as doorstep loans if a lender provides doorstep service. While taking out doorstep loans from direct lenders, you must ensure that the lender you are applying to accepts applications from borrowers with a CCJ.

• Check the bare minimum credit rating

It is crucial to check the bare minimum credit score before you apply for loans with a CCJ. Most of the lenders have the bare minimum score as acceptance. For instance, some lenders do not accept applications for any score lower than 400.

If your credit rating is 380, you will not be accepted. Because a hard credit search is made, it will worsen your credit points. Therefore, you should carefully check what score is the bare minimum. You can obtain these details from your lender by contacting them. Some lenders also reveal this information on their websites.  

• Satisfy your CCJ

While there is a possibility for a lender to accept applications despite a CCJ, make sure that it is satisfied. No lender would ever sign off on your application if you still have not discharged the outstanding dues. As soon as the judge makes a formal ruling about your outstanding debt settlement, you should strictly follow it and discharge the debt.

Find other alternatives to meet small emergency expenses if you come across some emergencies in the meantime. You should never try to borrow money from private money lenders in the UK unless you have completely settled your outstanding debt.

• Wait unless your CCJ becomes old

There is no doubt that you would never be able to qualify for lower interest rates unless the CCJ is removed from your credit report. It will take six years to disappear, and yet your overall credit profile will not be awesome. Removal of a CCJ from your credit file does not significantly ameliorate your credit rating overnight. However, it will improve your chances of being accepted.

But what if you come across some emergencies before the CCJ is cleared from your credit report? Experts suggest that you should pause from borrowing money. Borrowing for small emergency expenses is also not recommended after a CCJ is issued, even if it is satisfied. Make sure that you do not borrow money for any reason for at least one year. Otherwise, lenders will deduce that you cannot manage your expenses on your own. It will call your credibility into question. Consequently, lenders would be indisposed to lend you money.

Rely on your savings to meet emergency expenses. You should review your budget, cut back on expenses, and then stash away some money. Whether it is exiguous or not, you should adhere to your savings plan so you have some money to fall back on in case of emergencies.

Though the presence of a CCJ will lower your chances of being accepted as long as it stays on your credit file, lenders do not bother about it if it is old. For instance, after a couple of three or four years, lenders will be a bit lenient with your application. They will likely give the nod to your application.

To wrap up

Having a CCJ on your credit file is not commendable. This will not only lower your credit score but also prevent you from qualifying for a loan. If somehow you manage to get approval from a credit lender, you will end up with very high interest rates.

A golden rule of thumb says that you should avoid borrowing money unless a CCJ is removed from your credit file. If you still need money for an emergency, you should always try to research the market. Choose a lender who accepts applications with a CCJ and make sure that your CCJ is satisfied.