Advice and Tips // 31 March 2016
Having a CCJ (county court judgement) against your name can prove to be problematic when applying for car finance. Some lenders can look at this and decide not to offer finance because it is seen as an increased risk for them. However, not all lenders take this approach and it can still be possible to get the finance you need for the car you require.
There can be many reasons for a CCJ being issued but if you have been unable to keep up with any specific contractual payments it can often lead to this. A court will take a look at your income and expenditure details to determine an amount that you can pay back at regular intervals. By following this plan you can eventually pay off any money owed.
A CCJ will stay on your record for at least 6 years and this can be frustrating if it is affecting your ability to get finance. There are a few points to think about that can help your chances of getting accepted.
Certification of satisfaction – Once you have paid off a CCJ it is possible to get a certificate of satisfaction. Despite the CCJ still remaining on your record, this shows to any potential lenders that you have paid what is owed and can help you in any attempts to get car finance.
Intent – If you have not paid off your CCJ then you will be unable to get a certification of satisfaction. In this case, a lender will like to see intent to pay off the CCJ. This shows them that although you have a CCJ on your file you are still making a responsible effort to pay it off.
Guarantor – There may be situations where having a guarantor can help you as it minimises the risk for the lender. If you were to miss repayments then the guarantor would be responsible for paying these amounts to the lender.
Deposits – If you have the ability to pay a larger deposit as part of the finance agreement this can also potentially act in your favour. Paying a larger deposit means that the total repayments you need to make will be reduced. For the lender this effectively means lending you less money and can reduce the risk for them.
Address history – Having an easily traceable address history can help you when applying for finance. Generally lenders will want to see a 3 year address history. This allows them to look at each address and any credit you may have had on it to further assess your suitability for credit. Without this ability, it can be more difficult for lenders to help you.
Hopefully, by reading through these tips and applying them to your own situation where possible, you will have an increased chance of getting the car finance that you need.