Poor credit rating makes it hard to get approval for a loan, but a very poor credit score makes it harder. If you have a very poor credit score, it should raise an alarm bell. You may have a CCJ too. When you do not pay off your debts on time, lenders can start chasing you, and if you do not turn to their email and letters, they issue a CCJ against you.

It is a court order that gives you a time limit within which you are to settle your debts. Once a CCJ is issued against you, it will show up on your credit report for six years. It means you will not be able to take out a loan at competitive interest rates. Various lenders do not accept applications from people with CCJ. Here is how you can get a loan if you have a very poor credit score.

Try to improve your credit score

Although a few lenders can sign off on your application with a CCJ, you should improve your credit score. This will increase your options, and you can borrow money at affordable interest rates. Since your credit file is blemished, you cannot borrow a large amount of money, but there are various ways to build your credit score.

For instance, try to get a loan that is to be paid off in a couple of instalments. If you pay down all instalments on time, it will show that you stay committed to your financial obligations. Further, do not forget to pay all your utility bills on time.

If you use a credit card, make sure that you pay back the balance within the interest-free period. Since you have a CCJ, the loan you will get is called loans for CCJs. If you stay committed to your financial obligations, your credit score will gradually improve. It will improve from very poor to bad, and then you will be able to apply for bad credit loans. These loans are generally more affordable than loans with CCJ.

Talk to your lender

When you have a CCJ, you should talk to the lender at the time of applying for the loan. Tell them your actual financial condition and why you got behind repayments.

If they find that you had a genuine reason for being failed to meet your obligation, they will likely be ready to lend you money at lower interest rates.

Instead of applying with a new lender, you should seek borrowing money from your current lender. However, if you have a habit of committing a default periodically, your lender will not get convinced of your situation. They will likely believe that your story is a plain concoction.


Since not many lenders offer CCJ loans, you may think that you do not need to research. Remember that each lender offers different interest rates. If you shop around, you can compare deals offered by them to help you choose that best suits your needs and budget.

Experts suggest that you shop around the market not to end up with an expensive deal. However, you need to consider various things apart from interest rates while borrowing money, such as early payment penalty, late payment fees, processing fees, and the like.

Secure your loan

Since you know that a lender will not let you borrow a large amount of money, and most of them will require you to pay in a lump sum, you should pledge collateral.

It will not only help you borrow money at lower interest rates, but you will also pay down the debt over an extended period.

This will help you build your credit score. Note that the collateral will be worth more than the borrowing money. If you fail to pay off the debt, you will lose the collateral.

Take out a joint loan

A joint loan cannot let you borrow money at very attractive interest rates even if your co-applicant has a good credit score, but this is a great way when you need a large amount of money. The other method is to arrange a guarantor.

A guarantor must have a good credit rating. You will be able to use the borrowed money, and the guarantor will guarantee your timely repayments.

If you fail to pay off the debt, the guarantor will be obliged to pay off the debt. The lender will turn to the guarantor when all means of getting money fail.

Undoubtedly, many lenders will not entertain your application if you have a very poor credit rating. If any approves, you will end up paying it back at a very high-interest rate. If you are looking to borrow money at a competitive interest rate, you can if you follow the tips mentioned above.

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