If you have a CCJ and you’re trying to get car finance, you’ll already know that it’s quite a difficult task. You might be wondering if it’s even possible to get car finance with a CCJ. Understanding how your CCJ affects your application could improve your chances of finding a car finance deal.
What is a CCJ?
A CCJ is a County Court Judgement that is brought against you if you fail to respond to repayments. You receive a CCJ if your debtors (i.e. the people or organisation you owe money to) have issued you a written warning stating the amount you owe and that they will take legal action in the case that it isn’t paid. CCJs are kept on your record for six years, even after you have paid the amount back.
How does a CCJ affect car finance?
Having a CCJ can make it very difficult to get a car finance agreement. Car finance lenders need reassurance that you will make your repayments and a CCJ makes this less of a certainty. However, your personal circumstances can determine how much your CCJ affects your chances of getting your car finance. In other words: the amount you owed, how much you’ve repaid and how long it’s been since your CCJ all make a difference to the way it’s viewed by a lender.
How can I get car finance with a CCJ?
Whilst you can get car finance with a CCJ as an individual, you could also consider finding a guarantor to be part of your application. Having a second party that is financially responsible alongside yourself can improve your chances of being approved. It is important that both you and your guarantor understand that this approach is a big responsibility. Whilst a guarantor car loan is a viable option, it shouldn’t be taken lightly. Read more about Guarantor Car Finance.
My Car Credit looks at every applicant as an individual. We have a wide panel of lenders who are happy to consider people of all credit ratings and histories. You can conduct a soft search into your credit search, which will let you know where you stand without leaving a mark on your credit report.
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