A County Court Judgment (CCJ) is one of the most serious marks on a credit file, and it makes car finance harder to get. It doesn’t always rule it out, though. How lenders see it depends on how recent it is, how much it was for and whether you’ve paid it. This guide explains how a CCJ affects car finance and what you can do about it.
In short
You may be able to get car finance with a CCJ, usually from a specialist lender and at a higher interest rate. A CCJ stays on your credit file for six years. If you paid it in full within one month of the judgment, you can have it removed from the register. Older, smaller and satisfied CCJs are viewed less harshly.
What is a CCJ?
A County Court Judgment is a court order to repay a debt, made when a creditor takes you to court. In England, Wales and Northern Ireland, it’s recorded on the Register of Judgments, Orders and Fines, which credit reference agencies use. In Scotland, the equivalent is a decree.
How long does a CCJ stay on your credit file?
A CCJ stays on your credit file for six years from the date of the judgment, whether or not you pay it (Registry Trust).
- Paid in full within one month of the judgment: you can ask the court to remove it from the register, and it should then disappear from your credit file.
- Paid after one month: it stays for the full six years, but can be marked satisfied. Ask the court for a certificate of satisfaction so the record is updated.
Can you get car finance with a CCJ?
Some lenders will consider it. Mainstream lenders usually decline applications with a recent or unpaid CCJ, but specialist bad credit lenders may look at:
- How old the CCJ is. One from four or five years ago matters less than one from last year.
- Whether it’s satisfied. A paid CCJ shows you’ve dealt with the debt.
- The amount. A small CCJ is usually seen as less serious than a large one.
- What’s happened since. On-time payments since the CCJ help.
- Affordability. Your income and spending now.
Important
Expect a higher interest rate than you’d get with a clean credit file. Compare the total amount payable, not just the monthly payment, and only borrow what you can comfortably afford.
How to improve your chances
- Check your credit files with all three agencies (Experian, Equifax and TransUnion) and make sure the CCJ is recorded correctly.
- Get it marked as satisfied if you’ve paid it.
- Use eligibility checkers that run a soft search, so you don’t add hard searches to your file.
- Save a deposit. It reduces what you need to borrow and can make lenders more willing.
- Get on the electoral roll at your current address.
- Keep up all other payments to show a record of managing credit since the CCJ.
If the CCJ is wrong
If you didn’t know about the claim, didn’t owe the money or had already paid, you can apply to the court to have the judgment set aside. Get advice first, as there’s a fee and you’ll need a good reason. Citizens Advice can help.
Alternatives to consider
- Wait until the CCJ is older or drops off your file.
- A cheaper car bought with savings.
- A guarantor, if someone you trust is willing and understands the risk.
- Free debt advice from StepChange or MoneyHelper if you’re still struggling with debts.
See bad credit car finance for more on how lenders assess poor credit.
CCJ car finance FAQs
Can I get car finance with an unpaid CCJ?
It’s harder, but some specialist lenders may consider it, especially if it’s older or small. Paying it and getting it marked satisfied will usually improve your chances.
Does paying off a CCJ remove it from my credit file?
Only if you pay it in full within one month of the judgment. After that, it stays for six years but shows as satisfied.
How long after a CCJ can I get car finance?
There’s no fixed rule. Some lenders consider applicants with a CCJ from a year or two ago, while others won’t lend until it’s gone. Your chances improve as it gets older.
Do I have to tell the lender about my CCJ?
Answer every question on the application honestly. The CCJ will show on your credit file anyway.
Can I get van or motorbike finance with a CCJ?
The same principles apply. See bad credit van finance and bad credit motorbike finance.