CCJ car finance

Having a CCJ can make it harder to find a lender that will approve you for car finance. Understanding what a CCJ is and how one can affect your ability to be approved for finance, are the first steps to consider. Moneybarn’s CCJ guide is here to help.

What is a CCJ?

A CCJ stands for County Court Judgment, which is a type of Judgment in England, Wales, and Northern Ireland that can be granted against you if you fail to repay any debts that you owe.

Before you have a CCJ applied against your name, your debtors must issue you with a warning letter, to let you know that you need to repay what you owe, or they will pursue legal action.

The Judgment will issue a deadline for repayment and outline how much you owe and how you will need to pay. CCJs are kept on record for six years, even after you have paid off the amount, and having one on your record can make it difficult to obtain car finance.

Can I get car finance with a CCJ?

Some specialist lenders like Moneybarn can approve car finance for an individual who has a CCJ against them, or is:

  • Self-employed;
  • In part-time work; and/or
  • Has a poor credit rating due to having missed a credit card payment in the past

Securing car finance with a CCJ is certainly possible, and we could help you. If you’re unsure if you are eligible for car finance with a CCJ, contact Moneybarn today or use our online car finance calculator to get an idea of what you might be able to afford.

Can I get car finance with a loan default?

A loan default can occur if you’ve missed payments to a lender or missed payments on household bills. A default can stay on your credit file for up to six years, even if you pay the debt off. At Moneybarn we consider each application and we may be able to offer you car finance, even if you’ve been turned down by other lenders because of a loan default.

How to avoid receiving a CCJ

If you find you’re struggling to make your repayments, speak to a free debt adviser. They can help you make an offer to your creditors and explain the options available to you.

Usually, you should be able to come to an arrangement that allows you to continue making payments you can afford and avoid court action.

Make your loan repayments on time and pay off your debts early if you can. This shows lenders that you’re a sensible borrower. If you’re using savings to pay off debts, make sure you keep enough cash in an easy access savings account for emergencies.

Managing your budget with a CCJ

When you have had credit issues it is more important than ever to ensure that you have a regular income. This may mean that you need reliable transportation to get you to work, or even to allow you to earn money. Unfortunately, your CCJ may affect your ability to easily access finance.

We understand that keeping to your monthly budget is essential. Not only can we help you access car, van or motorbike loan if you have a CCJ, but we will also work with you to find a monthly repayment that is affordable for you. Use our car finance calculator to find the type of car that you could finance with Moneybarn.

You may find yourself in unexpected circumstances where you need a car or van to continue to earn money, perhaps for work. In this case, your CCJ may prevent you from getting the finance that you need to get on with your everyday lifestyle.

At Moneybarn, we understand that living affordably is key, especially if you have a CCJ. To that end, we ensure that all car finance agreements are suitable for you, and that the length of your repayments make sense for you and your life.

How to apply for car finance with a CCJ

To understand how Moneybarn can help with bad credit car finance or if you have a CCJ, contact us or apply online for finance today.