Loans and County Court Judgements

So what is a County Court Judgements (CCJ)?

They are issued when a person fails to pay a bill or repay money they have borrowed and the party who is owed the money has gone to court to enforce payment. This can happen with a secured loan or even with a mortgage.

If you have had CCJ registered against your name while it will give you a record which will affect your future ability to get credit for at least 6 years.

A CCJ effectively outlines how much you need to pay your creditors based on your previous non-payment history. If you still cannot afford repayments then the court will need to adjust the CCJ to reflect what you can genuinely afford.

It’s important that you keep up with payments under a CCJ as if you default then there is a likelihood that you could end up having the bailiffs at the door demanding a payment of sorts.

Having a CCJ will obviously show up on you credit history so no matter what type of finance you need you will find it very difficult to get a low rate loan. When you pay in full, you can have the CCJ marked as satisfied, but it does not come off your credit file.

Even when you have a CCJ some lenders will still provide you with a loan or remortgage. The main problem with these loans and remortgages is they will incur much higher interest rates than if you had a good credit history. Lenders will view your application as high risk and with every right. As the reason you have a CCJ is normally because of non-payment of previous loans so it’s not likely you will be able to borrow a very large amount of money.

Nowadays some companies provide specialists remortgages, which can be used to pay off the debts relating to a CCJ. This will only be possible if the value of your property has increased since the start of the CCJ. This method of raising money can be extremely helpful as it can also allow you to free up money for other purposes.

How does a CCJ affect my credit rating?

Your CCJ will appear on your credit file for 6 years (if it takes you more than 6 years to repay the CCJ, the creditor will re-register it with the credit reference agencies). However, your credit rating will already be affected by the fact you have not paid the contractual payments, which has resulted in you receiving a CCJ. If you manage to clear the CCJ within 6 years you can write to the credit reference agencies enclosing a “letter of satisfaction” from the issuing County Court to have the entry marked as “satisfied” on your credit file.


Having a CCJ was once a great burden on your ability to get a loan or remortgage. However, given the increase in specialist CCJ lenders it is now easier although you will pay the price for previous financial indiscretions by having to pay higher interest rates on your loan or remortgage.