A county court judgment (CCJ) can have a negative impact on your reputation for up to six years. That implies you may be unable to obtain loans, credit cards, or even mobile phone contracts. However, there are steps you can take to mitigate the effect of a CCJ. It is possible to improve how lenders perceive you by responding quickly and maintaining your credit report (also known as your credit file or credit profile).
What exactly is a CCJ?
If a creditor believes you will not return money owed to them, they may file a CCJ against you. If the courts concur with the creditor, the judgment will be issued and you will be ordered to repay the money. You will receive a notification of your CCJ in the mail, at which time you can choose:
Pay back the entire amount right immediately.
Request that payment is made later or in installments.
Contest the claim or the sum owed (if you believe the creditor’s claim is incorrect).
Dispute with the owner (if you think the creditor owes you money, e.g. for breaching a contract)
If you disregard a CCJ or fail to meet its conditions, the court may take more drastic measures, such as seizing your property to repay the debt.
Who will have access to my CCJ?
Your CCJ will be entered into the Register of Judgments, Orders, and Fines, which is a public record. This rule has two exceptions:
If you pay the entire amount within one calendar month of receiving the CCJ, it will not be recorded.
If you contest the CCJ and demonstrate to the courts that it was given in error, your CCJ may be canceled or set aside, which means it will not be recorded.
Your CCJ will be kept on the register for six years if it is noted. For a small fee, anyone can search the public register and see your name and location, the case and court number, and the amount due. This CCJ search will not reveal who you owe money.
What impact will a CCJ have on my credit profile?
If your CCJ isn’t documented on the Register (for example, because you paid it off immediately), it won’t show up on your credit report – but any defaults that may have led to your CCJ will. Your CCJ will be added to your credit report if it is noted on the Register.
A CCJ on your credit report will drastically reduce your credit score. When you apply for credit, lenders examine your credit history, and a CCJ can make it difficult to obtain a loan, credit card, or even a bank account. Before hiring you or letting you rent property, employers and letting agencies may check your credit record and thus see your CCJ. This article will answer the question: Does universal credit affect your credit score?
Checking your Experian Credit Report will allow you to perform a CCJ check as well as see what else is on your credit record.
What is the duration of a CCJ on your credit report?
Even if you pay it off during that period, a CCJ will remain on your credit report for six years. Even if you haven’t paid it off completely, it will no longer show on your credit report after six years.
Check your Experian Credit Score to see how a CCJ is impacting your ability to obtain credit. This is a number ranging from 0 to 999 that represents your credit details. The greater it is, the more likely you are to be approved for credit.
Can I have a CCJ removed from my credit report?
If you can demonstrate the following, you can petition us and the other two credit reference agencies to remove a CCJ from your credit report:
You paid the entire amount within one calendar month of receiving the CCJ.
You’ve had the CCJ for six years now (in this case it should be automatically removed)
You challenged the CCJ, and the judges canceled or “set aside” it.
The debt was owed to an insurance firm.
We hope that the FAQ has helped to answer the majority of your questions in regard to county court judgments. If you should still have any questions, please reach out to us.