A guide to getting car finance with a CCJ


Having a CCJ, or County Court Judgment, granted against you means it’s still possible to get car finance. However, because it shows up on your credit record for six years, and makes you look like a risky borrower, a lender might not want to lend to you. Especially if you still have not paid your CCJ, but even if you’ve settled yours there are lenders who will consider your application. Even so, it’s worth trying to get your CCJ settled before applying as this will make the whole process easier and quicker.

Failing to make payments can result in a CCJ being made against you.

It will appear on your credit file as an account that has gone into default and may prevent you from getting credit in the future.

The majority of lenders will perform checks to see if they can lend to you. It will be taken into consideration how long ago it was issued, whether it is still active, and whether there have been any subsequent debts taken out in the meantime.

CCJs are always on your credit report for six years, regardless if you have paid it off.

A CCJ on your credit file is a black mark against you and will remain there for six years from the date it was first registered. It means that even if you pay off the debt in full, or have it written off as part of a debt settlement agreement or bankruptcy, this will still affect your ability to get credit for a period of six years after it was originally registered.

Since secured lending (where you put up a car or another asset in exchange for funds) is only available to you if you have passed at least one credit check in the last six months, it is crucial that you understand this.

If there are no CCJs on your credit history file, lenders are more likely to lend you credit, compared to someone who has more than one CCJ on their record – even if the debts were paid off before applying for a loan! 

Car finance with a CCJ is still possible.

Depending on the lender, they may be able to help you get car finance with a CCJ. The type of car finance and CCJ you have can affect what you are offered, bear in mind that recent CCJs make getting car finance more tricky. Although, if it has been resolved, then you are more likely to be accepted for a loan.

Several factors will determine whether or not lenders will offer to lend you the money to buy a vehicle with bad credit. These include:

  • The amount owed on outstanding debts
  • The length of time these debts have been outstanding

It’s best if your CCJ is settled before you apply for finance.

If you are close to settling your CCJ, lenders may require proof that you have made payments towards it before approving your application. If you do not have this, they may not approve your application.

It is always good practice to try and settle any CCJs before applying for car finance, this is because lenders want to make sure that you can make repayments.

The lender might view your situation differently if you’ve paid off your CCJ.

For example, the lender might be more willing to lend to you and offer a better deal. It may be possible for them to offer you a lower interest rate or a longer repayment period so that it is easier for you to pay back the loan. However, each lender is different so this isn’t set in stone and it is always best to make sure you know what your options are when making an application.

There are lenders who will consider offering car finance even if you have a CCJ.

You may still be able to find someone willing to help you secure a car on finance even if you have a CCJ on your record.

Here are the rules:

  • Most lenders are happy to offer cars on finance to those who have no outstanding balance on their CCJ, this is because you can prove that you can make repayments.
  • If you still have outstanding balances to pay on your CCJ that have been set out by a creditor, getting a car on finance with a CCJ may prove more difficult. It is important to remember that it is still possible to get a car on finance with a CCJ.

To conclude

At Bad Credit Motor Finance, our specialist team is here to help walk you through your options if you are considering getting a car on finance with a CCJ. 

We understand that having a CCJ can make applying for car finance stressful, so we can take care of all the ins and outs, giving you peace of mind. Having bad credit should not stop you from securing a car on finance. Moreover, car finance with a CCJ is not impossible to get, there are lenders out there who are willing to help you.

Luckily, at Bad Credit Motor Finance, our team of brokers has a vast panel of lenders to choose from, meaning car finance with a CCJ may be possible for you. We’ll take care of all the rest, so you can focus on choosing the car you want. Use our quote tool to see what you could get today!