3 Ways a CCJ Can Ruin Your Life and How to Get Rid of It

Discovering a County Court Judgment (CCJ) against your name can seriously affect many aspects of your life. It may seem unfair, but your life could be ruined by a CCJ, even if the amount in question is small. It can hinder your ability to secure credit, rent property, or obtain certain jobs. However, understanding the steps to resolve these problems by removing the CCJ from your record is crucial. In this article, you’ll learn about the three biggest problems caused by a CCJ and how to resolve them effectively to safeguard your financial health and future opportunities.

1. You can’t get a mortgage or other credit

For many people, the first time they realise they’ve got a CCJ registered against them is when they apply for a mortgage.

Mortgage lenders always carry out a credit check. They want to know whether you’re able to repay your mortgage. If they see a CCJ on your credit file, they assume you don’t pay your debts. As a result:

• they may not offer you a mortgage at all, so you can’t buy your dream home
• they may only offer you a mortgage at a much higher rate, which could potentially cost you tens of thousands of pounds

Even if you don’t need to move house, a CCJ will affect your eligibility for:

• credit cards
• other types of loan
• a mobile phone contract

A CCJ could be disastrous for your future financial health.

2. You can’t rent a property

Most landlords conduct credit reference checks. The last thing they want is a tenant who cannot pay their rent.

If they see a CCJ on your credit record, they are far less likely to rent the property to you. Often, landlords have more than one application to rent the property. They are far more likely to choose someone with a clean credit record.

In the worst-case scenario, if you can’t buy or rent a property, you may find yourself homeless.

3. You could be refused a job

Several professions require a clean credit record, particularly in the financial services industry.

Many employers must do a credit check before deciding whether to employ you. Having a CCJ against your name may mean they’re not legally allowed to employ you, even if they want to.

As a result, a CCJ could cost you your job and leave you unemployed.

What to do about it

The cost of having a CCJ on your credit record will probably far outweigh the amount the court has ordered you to pay. If you can, you need to get the CCJ removed.

There are potentially three ways to remove a CCJ:

1. Pay it in full within 30 days
2. Wait six years, and it will automatically drop off your credit file
3. Apply to have the judgment set aside.

Unless the CCJ is very recent (i.e. within the last 30 days) or very old (i.e. nearly six years old), your best option is probably to apply to have the CCJ set aside. You will need to persuade the court that there are good reasons. One of the most common grounds for setting aside a CCJ is if the defendant didn’t know about the claim.

What Happens When the CCJ Is Removed?

Removing a CCJ from your credit file will significantly improve your financial standing and open up previously unavailable opportunities. There will be no record of it on the public register, which means your credit score will improve, making it easier to obtain credit cards, personal loans, and mortgages at competitive interest rates. Secondly, without a CCJ, landlords and employers will view your credit report more favourably, increasing your chances of securing rental properties and job positions that require a clean credit record.

CCJ removal gives you a fresh start for managing your finances. The slate is wiped clean, allowing you to rebuild your financial reputation and pursue new opportunities with greater confidence.

FAQs

What is a CCJ?

A CCJ is a County Court Judgment, a type of court order in the UK resulting from someone claiming money from you. The Registry Trust records the CCJ in a central registry.

How does a CCJ affect you?

A CCJ will cause your credit score to plummet, making it harder to obtain credit, such as a mortgage. Many landlords won’t rent to someone with a CCJ. It can also limit job prospects because many professions require a clear credit record.

How long does a CCJ stay on your credit file?

Unless a court sets the CCJ aside, it will remain on your credit file for six years from the date of the judgment. However, paying the total amount within 30 days will remove the CCJ from your record and improve your credit score.

Is it possible to appeal a CCJ?

You can apply to have a CCJ set aside if you believe the court issued it unfairly or without your knowledge. You must apply to the court using form N244, explaining why the judgment should be removed.

How can I check if I have a CCJ?

You can check if you have a CCJ by accessing your credit report through credit reference agencies like Experian, Equifax, or TransUnion. Additionally, you can search the Register of Judgments, Orders, and Fines.

How does removing the CCJ help?

If the judgment is removed, it will be as though the court never issued it in the first place. All the negative consequences will disappear, and your financial life will be back on track.

Conclusion

Dealing with a County Court Judgment (CCJ) can be a daunting and stressful experience. The consequences of a CCJ can extend into many areas of your life, from securing loans and mortgages to finding housing and employment. However, you can take control of the situation. By addressing the issue promptly, you may be able to have the CCJ removed, which will eliminate the negative impacts and help you work towards a brighter financial future.

Need Help Removing a CCJ?

If you’re looking for practical, expert help with removing a County Court Judgment, we recommend CCJ Removal Services — a trusted, not-for-profit legal advice agency. Click here to jump to their free consultation form or call them on 0161 711 1455 to speak with an expert today.