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Will My Car Finance Be Approved If I Have CCJ?

by | Dec 11, 2020 | Car Finance | 0 comments

Will My Car Finance Be Approved If I Have CCJ?


​When you have a CCJ or County Court Decision, your credit rating may also be affected.


But will this prevent you from getting car finance or car loan? Not exactly.


There have been a variety of forms people may afford a new vehicle, so here’s what to remember.


What is a CCJ?


When you don’t repay borrowed amount of money, you may receive a court order known as a CCJ. Whether it’s resolved or unresolved, it may impact your credit rating. 


How is your credit score affected by a CCJ?


A court order or CCJ can impact your credit score because it’s an indication that you failed to repay the amount of money you owe.


CCJs that are not settled in the next 30 days will be recorded in your credit history and embedded for the next six years.


When the CCJ is recorded, you may find it challenging to apply for a credit card, take out loans, and more.


A CCJ may also prevent a lender from agreeing to finance your vehicle.


Can I still car finance with a CCJ?


It’s not impossible to obtain car financing if you have a CCJ, but it will be more challenging to do so. Your options may be more limited in this case.


If you receive a CCJ or encounter other financial problems, your ability to obtain credit may be affected.


Some lenders may not lend you any amount of  money or finance your vehicle because you are deemed a risky borrower.


However, this is not the end of everything. Here’s what you can do:


  • Look For A Bad Credit Specialist on Finance


One of the options that you should consider is working with a car finance firm that handles bad credit customers. It’s a better option than working with a company that offers a myriad of loan products for various purposes.


The lender that you should look for is one that accommodates borrowers with bad credit.


These lenders know for a fact that customers with bad credit may still be good, responsible customers.


You may have a CCJ from years back but it doesn’t mean that your financial situation hasn’t already improved.


  • You Should Be Ready To Provide More Data Information

You should be prepared to offer the data information requested from you since lenders may ask for details to ensure you’re not a high-risk borrower.


You may be able to get credit as long as the lender receives the other information they require including your proof of income and personal data.


Keep in mind that every lender may have a unique set of requirements be it a personal or business.


  • How You Can Improve Yourself to Get Car Finance


One of the best ways to rid yourself of trouble from lenders is to improve your credit score by repaying the debt that you owe.


Once lenders see that you are settling your debt on your car credit, you will be considered a safe borrower.


You should also ensure that you register for the electoral roll since it may help your loan get approved.


Also, if you are not on the electoral roll, make sure you register because this can also help you to get approved.


  • You Can Get A Guarantor For Your Loan or Credit


In case you’re unable to obtain vehicle financing because of your CCJ, you should consider other options including taking a guarantor on board.


It’s best if your guarantor has good credit so that your chances of getting financing approved is improved.


Begin You Car Finance Search even with CCJs


It’s not impossible to obtain car financing even if you have a CCJ if you work with a suitable loan provider.


It’s also best if you make an effort to show that you are a sensible and responsible borrower by improving your credit rating. Doing so will eventually get you the good credit required to purchase a vehicle.


At the same time, help yourself please by showing that you are responsible and sensible, and you should be able to get the credit you need to buy your car.