CCJ Car Finance: Your Guide To Bad Credit Car Loans

Obtaining car finance with a County Court Jugement (CCJ) can be challenging, but it is not impossible. If you have a CCJ, lenders have historically viewed you as a hazardous borrower. This guide has been made to help you understand what CCJs are. We created this guide to assist you in understanding what CCJs are. We’ll also go over auto finance with a CCJ and how you may get approval in this guide.

All About CCJ Car Loans

Car financing is one of the most popular ways to purchase a new or used car in the United Kingdom. It’s also one of the most affordable methods to get behind the wheel. Such types of car finance products are Hire Purchase (HP) agreements and Personal Contract Purchase agreements (PCP).

However, holding a CCJ may complicate the application procedure. A CCJ is a black mark on your credit history that lasts six years from the date it was registered.

You may be able to obtain vehicle finance with a County Court Judgement, depending on the lender. It all depends on the type of car loan you have and the type of CCJ on your record.

What Is A CCJ?

You’ve probably heard of a CCJ or judgement. If not, it’s important to be aware of it because it can influence how lenders treat your vehicle finance application.

A CCJ is an abbreviation for a court judgement against someone for failing to pay money they owe. This occurs when you fail to repay credit cards and loans on schedule. As a result, a creditor will penalise you through the court.

The fact that CCJs remain on your credit report for six years distinguishes them from other financial conditions. Even if you have already paid in full.

The main reason for this is that most lenders will only lend you money if you have collateral. If they can show you’ve passed at least one credit check in the last six months.

They are more inclined to lend you money if your credit report reveals that you have no CCJs on your record. In comparison to someone with multiple CCJs on their record.

How Do I Find Out If I Have A CCJ?

The first step is to determine whether you have a CCJ. You can use the following methods to find out:

  • Examining your credit report
  • Examining your credit score.
  • Checking your credit score. You can use this website to estimate the type of rating you’ll receive based on the information currently on file with each of the credit bureaus.

If you have a CCJ, you are likely already aware of this. Because you will receive a letter with the details enclosed. However, you should check to see if you have a CCJ after you have paid it off. It’s always a good idea to look into what’s hurting your credit score. This is done so that you can best prepare for getting a car loan.

Can I Get Motor Financing If I Have A CCJ?

Yes, you can get car finance with a CCJ. There are lots of reasons why you might want to do this and it’s important to plan ahead and be realistic about your expectations. 

  • You must be truthful about your situation and how it will affect your capacity to repay.
  • Even if you have paid it off in full, it will be more difficult. This is entirely dependent on how long ago you received the CCJ and if you have paid it off.

There are several factors that will influence whether or not lenders are willing to approve your application when deciding whether or not to finance a car with bad credit. Past debts, whether any are still outstanding, and the type of debt you may still have all have an impact on how lenders perceive you.

Bad Credit Car Financing: How Should I Proceed?

If you want to get auto loan with a CCJ or IVA, you must first understand your credit score. Good credit history will increase the likelihood that the lender will be willing to assist you.

But if you have bad credit, your options may be limited or the process of securing car finance may be more difficult.

So, how should I proceed?

Don’t worry if you’ve been turned down before! There are still numerous options for drivers with bad or no credit history to obtain a new automobile.

However, before seeking car finance, you should constantly evaluate how you can keep on top of your money. In the United Kingdom, there are three major credit reference agencies. They all give suggestions and advice on how to increase your credit rating.

A vehicle financing brokerage business is one of the finest ways to apply for a car loan with bad credit. We and our colleagues at Bright Motor Finance may be able to assist you in obtaining car financing. Our dedicated staff members are here to answer any inquiries you may have.

Tips For Increasing Your Chances Of Obtaining Car Finance With A CCJ

If you have a CCJ on your credit report, you will most likely be unable to obtain auto finance without a guarantor or by paying extra for your own insurance. This indicates that if you want to buy a new car, you should consider used cars instead.

If acquiring auto finance with a CCJ is critical to you and nothing else will suffice, follow these guidelines:

  • Get a decent credit score – If you can raise your credit score to a high enough level (above 700), there are lenders who will issue unsecured loans with bad credit if they consider there is sufficient equity in the property used as collateral for the loan.
  • Pay as much of your CCJ as you can. The sooner you clear your County Court Judgement from your credit report, the better. Despite your financial situation, lenders may view you as more reliable as a result of this. For example, if you have a solid credit history, the lender may be more willing to lend to you and give you a better rate.

A Car Loan With A CCJ Is Doable With An Honest Application And Realistic Expectations.

If you are in a position where you need to get a car loan with a CCJ, it is critical that you complete an honest and realistic application. Being open and honest about your condition can help the lender comprehend your financial situation. They can then advise you on how to proceed with your application.

Being honest means being clear about:

  • Your earnings
  • What kind of car do you wish to buy?
  • Your current debts, which may include CCJs and other loans

Speak with one of our brokers to find out what vehicle finance options are available to you.

To Finish

We hope this post has clarified how to secure a vehicle loan with a CCJ. We recognise that a CCJ can be stressful, and in most circumstances, we can assist you in obtaining your dream vehicle.

You should be able to finance a car even if you have bad credit. Furthermore, CCJ auto funding is not unattainable. Fortunately, Caryy has a team of professional lenders ready to assist you.

We want you to have your perfect vehicle and will handle all of the unpleasant aspects of car financing for you. All you have to do is worry about the car you wish to take a loan out. Use our services immediately by applying now!

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