Received or expecting a CCJ? Don’t be scared. You can manage it alone. But if you don’t handle it prudently, it can make your financial life very hard.
A County Court Judgement (CCJ) can place a big barrier to obtaining credit as it takes a toll on your credit ratings. However, this is not always the case.
CCJ is a judgement that the court issues against an individual who has not repaid the loan. The lender usually takes the name of the borrower towards the court after the deadline ends. The court issues the judgement against that person and asks to repay the pending amount to the loan provider.
Getting the funding at crucial times when you have the CCJ against your name is not an easy task. Fortunately, some direct lenders like Fastmoneyfinance are ready to offer loans to the individuals like you.
Specific financing options are open for you even after having a CCJ in your name. The most popular are loans for CCJs and bad credit from direct lenders with no guarantor.
This read will educate you on what it is and all your financing options after receiving it.
What is CCJ, and what does it mean if you have it?
A CCJ or County Court judgement is a verdict issued by the court when an individual fails to repay the borrowed money to the lender or company. This is an action your creditor takes after you default on the repayments of the money you owe, considering you a bad debtor.
Receiving a CCJ is not something that is done without you knowing it. Before issuing it in your name, your creditor must have sent colossal warning letters and offered you a settlement outside the court. When you don’t respond to any of these, then CCJ is finally lodged on your name.
CCJ order affects your financial being. It impairs your credit score, or the court issues orders to collect the owed money in different methods. This causes grave problems, and the whole process gets humiliating for you and your family.
The significant impact of CCJ is on your financing sources. Using credit options like credit cards, loans, and mortgage gets tricky after receiving it in your name. Additionally, if you fail to repay the total amount within a month, this defaulting record is placed in your financial record for 6 years.
What should be done after receiving a CCJ?
If you have received a county court judgement, consider never ignoring it. If you disregard it, then you will be dragged to court. The letter you receive as a warning contains all the details and course of action if you ignore it.
Once you agree that you have a pending payment to make to your creditor, you should repay it in full. Still, if you cannot afford to do it, tell your lender that you will do it soon.
Also, if the amount mentioned in the claim is more than you owe, you can always dispute the statement. But whatever option you choose, always be responsive.
What are the credit options after receiving a CCJ?
Receiving a CCJ doesn’t mean that there is a dead-end to your financing option. There are numerous ways to get credit, as follows.
- Direct lending
You can apply for loans for CCJs and bad credit from direct lenders with no guarantor. Please note that such types of lending are offered at a high-interest rate with short loan tenure. Therefore, always choose a credible lender.
Once you choose the lender, the most significant benefit you get is no need to arrange a guarantor. You can apply based on your capacity and current affordability. However, if you repay the whole amount under the schedule, it will improve your credit score and help erase the judgment against your name.
- Credit brokers
Credit brokers work for a company that provides help in finding the best loans for CCJ receivers. They even guide you in your loaning process as they have comprehensive knowledge of loans and contact with different lenders.
Using this option is practical to borrow money with a CCJ. However, they charge a fee for doing this, which can be a little expensive.
- Doorstep loans
Doorstep loans are another option to arrange funds. These loan providers often give loan sums to your house. Additionally, they come to collect the repayments at your doorstep.
It might be uneasy for some people. The situation can even go stressful if you skip or miss the monthly payment any day. Still, it is a good option when you are unable to visit outside your home. Remember, you may have to pay the higher interest rates.
- No guarantor loans
These loans are designed for individuals with bad credit ratings or who cannot add a cosigner to the loan.
In guarantor loans, a cosigner is perceived as a security for the lender, which is absent in no guarantor loans. Therefore, it is offered at a high-interest rate, usually paid back within a short period.
How can you avoid receiving a CCJ?
The best way to sidestep a CCJ is through making timely repayments. Consider paying all the credit card bills, mortgage, and other existing debts within the pre-decided timeline.
If your current circumstances do not allow you to do it, talk to your lender and make them understand your situation. They might offer you relaxation for some period. However, you have to ensure that you repay the entire amount.
If you do not repay the loan, it will harm your credit score more. If you already have a poor credit score, there is a chance of going down to adverse credit scores.
Take away
Receiving a CCJ can be scary. You face a tough time taking out loans when you need them urgently. If you are going through the same situation, then you can get loans for CCJs and bad credit from direct lenders with no guarantor at a competitive interest rate.
If your lender took court action to default your repayments, it is unlikely to receive a CCJ without a prior warning. Once you receive it in any form, respond to it immediately because if you ignore it. This can bring grave consequences to your life.
Try borrowing a sum of money that you can be repaid quickly. Ensure that you calculate the repayments with interest beforehand. The best way to avoid a CCJ is not to default on your loan and keep up with all the repayments on time.
Lisa Ann has developed a well-experienced professional career. From managing the staff of more than 50+ loan experts at Fastmoneyfinance to boosting the delivery of various loan offers, she has acquired many challenging roles to come out with the best results for the company. Lisa Ann is a Senior Content Author and the Chief Financial Advisor at Fastmoneyfinance. To back her massive experience in the UK’s financial industry, she has the postgraduate degree and diploma in Business and Finance.