A CCJ (County Court Judgement) is a judgement of the court that asks you to pay your debt within a timeline and is one of the actions taken by the creditors during the debt collection process.

If you have received a county court claim to respond within some period, it is vital to do it within the time frame. If you fail to answer, the court orders you to refund your debt at a rate you cannot afford.

If you have received such a claim form, then don’t panic.

If your creditors have started legal action, don’t worry, you have 1 month to respond.

If you eliminate your debts now, you can handle your CCJ quite easily. How? There are loans for CCJ that direct lenders provide.

There will be many questions in your head now. Let us address it one by one.

What happens if I fail to pay CCJ?

If CCJ has been issued to your name, then it indicates that you have committed a serious financial fault. It can highly weaken your credit score.

Furthermore, you may not face CCJ notice when you fail to spot one repayment, but if you miss repaying your debts incessantly, the creditor reaches out to the court.

Once you receive the CCJ, you will have to face grave consequences as your financial life may be completely disturbed after then. You cannot access any financial product.

But if you truly don’t have enough money to pay the owed debt, the court asks you to pay the amount you can afford after mutually agreeing with the creditor.

Can I settle my CCJ?

You can choose to repay your debt in full or in monthly instalments. One thing is sure, the quicker you pay, the superior it will be for your financial score.

If you successfully pay your debt within a month subsequent to receiving the CCJ, it will not be registered anywhere on your financial record. But, if you fail to pay off your debt within 30 days, it is going to stay on the legal file and stain your financial record for 6 years for sure.

How does a CCJ influence my financial score?

CCJ is not healthy for your overall credit score. It goes down by 80 points when you miss paying your debt. It is further deducted by 350 points if you fail with your loan repayments and get even lower by 250 points after receiving a CCJ.

When your credit score becomes bad, you will find it difficult to find a loan on positive and favourable terms. You may face difficulty while applying for credit cards as well.

And if you think of taking help from a bank or financial institution, they will check your credit profile. You may not get the variety of options you would have gotten if your credit card score had been decent.

Can I enhance my credit score after obtaining CCJ?

See, building a good or bad credit score is not an instant process. Your credit score will steadily boost over time if you settle your debts on term. The more delay with repayment, the more your credit rating gets impacted unfavourably.

You can follow a few ways to mend your credit score positively.

• Review: You should consider checking your credit reports periodically. If you find anything fraudulent or any error, report it to CRA (Credit Reference Agencies) for rectification. Checking your credit score regularly can keep you familiar with where you can improve financially.
• Payment: You need to pay your full bills on time. This highly ascends your credit score gradually. Keep a check on your bill due dates to ensure timely payments.
• Credit ratio: Make sure to keep your credit utilisation the lowest. A low credit usage shows you are managing your finance efficiently.
• Control: Restrict yourself from taking multiple loans, which lowers your credit score. Always keep a gap on the date of application and if it gets rejected, find out the reason and work on them before applying again.
• Affordability: Analyse and estimate the amount of money you need and how much you can afford to borrow. If you borrow more than your affordability, you can fall into the debt trap very soon.

Having a good credit score is vital and building it requires time and patience when managing your debt. There is more additional concerning you than just your credit scorecard.

What you have accomplished in history does not matter. You can handle your present very well if you act now. You can mend your future by simply taking loans for CCJ from a direct lender. Yes, you can! Even if you have a CCJ issued on your name and a bad credit record, there are lenders who offer CCJ loans with flexible repayments options.

If you pay your CCJ balance in full, it will help you with your credits in the future. Let’s be responsible and encourage ourselves not to get more debts. We recognise sometimes when we are helpless and need cash on an immediate basis.

Every individual deserves a second chance, and no one should be deprived of affordable credit because of CCJ. Let’s act now and take CCJ loan lenders’ help, just pay your debt in one go and try to maintain a good credit score following the above methods.