A County Court Judgement (CCJ) is legal action taken against you if you fail to repay a debt. CCJs remain on your credit record for six years and can serve as an important deterrent for lenders.
Loans can help address CCJs and other negative credit issues like arrears or missed payments. Most of these loans are secured, so a guarantor may be necessary in order to access them.
Secured
A secured loan is a type of loan that requires you to pledge an asset, such as your home, as security for the money lent. In case of default on payments, the lender has the right to repossess the asset and recoup any outstanding balance.
Secured loans often feature higher borrowing limits and longer repayment periods than their unsecured counterparts, however this also implies a higher interest rate.
When searching for either a secured or unsecured loan, it’s wise to shop around and get the best deal available. Finding an appropriate option can make a significant impact on your monthly budget, helping you save money in the long run.
If you have a County Court Judgment (CCJ) or other high-value debt, it may be possible to secure an unsecured loan with a reliable lender that works with Proper Finance. This would enable you to pay off your County Court Judgment, several other debts, as well as some personal funds all at once in one manageable monthly payment.
This could allow you to free up a substantial portion of your income for other bills and expenses, giving you the opportunity to improve your financial situation. Our lenders are all FCA regulated and authorized, which means they possess the necessary expertise to expedite and effectively process your application.
When applying for a CCJ unsecured personal loan, your individual circumstances and credit history must be taken into consideration. You may require either a guarantor or proof of income in order to secure the loan.
CCJ unsecured loans follow a similar vetting process to an unsecured loan, except your credit file will be examined instead of the asset being considered. This may result in lower interest rates than with an unsecured personal loan; however, if your credit history isn’t good enough for these low rates to stick around, you could end up paying more than with conventional financing.
Many lenders will be wary of lending money to people with CCJs, as they may view you as a higher-risk debtor. They want to know why the CCJ occurred and what steps have been taken to prevent a repeat of the event.
No matter why you received a CCJ, be aware that it will remain on your credit record until either full payment has been made or at least one month has elapsed since issue. That is why it is critical to reach out to a lender and request help in settling the CCJ as quickly as possible.
Another option is applying for a homeowner secured loan, where your property acts as security for an unsecured loan. This could be an excellent way to consolidate existing debts and make them simpler to manage.
If you can demonstrate that you have made changes to your business model to prevent this issue from reoccurring, then you could be an excellent candidate for a CCJ unsecured loan. Niche lenders typically understand the difficulties that can result from CCJs and will assess whether it makes financial sense to extend a loan rather than just considering details on your credit report.
