Every young individual in the country has a credit score. It indicates the person’s ability to manage existing loans and future borrowings. Credit Agencies like Experian gauge a person’s financial information from the leading financial institutions, electoral roll, and county courts.
They share the report prepared with lenders by analysing the data collected. The data help the lender decide whether to lend the money to you or not. It lists the potential issues that may impact the borrower’s repayment ability. And one of these issues is CCJ.
What does a CCJ imply?
A CCJ (County Court Judgement) is a court order in which the lender issues getting the money back from the borrower. If the court agrees to the outstanding debt you share, you will have to repay the debt. The court helps the borrower in the route to clearing the debt. A CCJ can negatively impact your credit report as it reveals that you have not repaid something you borrowed.
Having a CCJ on your credit profile is unfortunate as mainstream lenders often turn down loan applications with a profile revealing CCJs.
Do I share the possibility of qualifying for a loan with a CCJ?
You can grab a loan even if your profile reveals CCJ. Some lenders provide a loan for CCJ people. Issues like CCJ reveal poor credit scores, and getting a loan in that situation is tricky. Providing sufficient evidence to repay the loan might help you get it.
If you succeed in getting a loan with a CCJ, make timely payments and keep your outgoings low. Utilise the moment as an opportunity. Make disciplined payments. It will help update your credit score.
Here are some ways to get a loan with a CCJ:
1) Identify the CCJ loan eligibility criteria
Identify the loan adaptability for your circumstances. Here are the general criteria for a CCJ-based loan:
- He must be a citizen of the country
- Should be above 18 years of age
- Should share part-time/full-time employment and income
- Have a relevant contact number and Email ID
- He should have a valid debit card
- You do not have too many CCJs or nearing the tenure
If you meet the general criteria, you may get the loan instantly.
2) Counter outstanding debt payments
Eliminate other debts you have in your credit profile. It could be anything like payday loans, no guarantor loans, short-term loans, doorstep loans, etc. It may impact your loan approval. Identify your income and monthly savings.
Figure out the loans without a pre-payment penalty. You can clear these with a lump sum. You can even consolidate some payday loans or other loans into a single lump sum. It would reduce the liability and improve your credibility for the loan.
- Wait for around 6 months to apply for credit
There may be some life aspects when you need fast cash. However, you can counter this by saving for a rainy day. Having emergency or rainy-day funds can save you the hour of distress.
You can avoid applying for short-term loans. If you do not apply for any loan for 6 months, you may improve your credit profile and get a loan with CCJ.
It would help demonstrate the best picture before lenders. You may get the loan instantly.
4) Avoid changing or shifting your residential place
It is avital factor in securing a CCJ loan. When you find yourself stuck in a situation, it is better to abide by the rule.
Staying at the same address is good from the legal concerns as well. Even though you have CCJs and have yet to reach the termination, the lender may provide you with a loan.
Address stability- help you qualify. It helps the lender trust the borrower with the payments and, if called for, can conduct a meeting.
Opposed to this, if the borrower has an inconsistent residential history, he may struggle to get the loan. The lender may not trust the whereabouts and hence may reject the loan.
5) Get a guarantor over the loan
If you need a CCJ loan, you can call upon a guarantor. He would help you assist with the loan qualification by providing his credentials. The lender considers both credit reports to know whether the person can be the guarantor.
If yes, he would be responsible for the loan repayments if you can no longer continue it. A guarantor may also help you fetch better interest rates and lower the overall costs. It also eliminates the fear of entering a default and getting another CCJ.
6) Ensure sufficient income source
When you have bad credit, lenders identify other ways the borrower may qualify for the loan. Income is one of those factors after the guarantor that a lender seeks. You may get a loan even if you lack reputed credit history.
All you need is a sound income source to get the loan. Identify the best ways to increase income.
You can seek a part-time job along with full-time or seek an increment. A flexible and reputableincome can help borrowa higher amount for any purpose in CCJ loans.
Self-employed with CCJs can also get the loan by revealing the self-assessments filed.
The loan is ideal for business andpersonal finances.
If your income is not up to the mark, demonstrate the best ways you can afford the loan. It is ideal not to apply for this short-term loan if your pay does not suffice the repayments.
These loans are for those who share incredible credit profiles but suffer loan rejection owing to CCJ in the credit profile.
A CCJ stays for 6 years on the credit profile. Until then, one may not get a high-interest loan. CCJ loans help individuals meet their requirements with ease.
A loan for ccj is of great help to individuals and businesses sharing application restrictions due to loan default. You can overcome your necessities by swiftlyqualifying for CCJ loans. The blog lists the best ways to boost your chances for a loan with CCJ.
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.