3 Ways a CCJ can Ruin Your Life (And What to Do About It)

3 Ways CCJ Ruins Life

If you’ve discovered that a CCJ (County Court Judgment) has been registered against your name, you may already have experienced some of the devastating consequences.

It may seem unfair but your life could be ruined by a CCJ, even if it’s for a tiny amount.

Here are the three biggest problems you may experience as a result of the CCJ:

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 will assume that you don’t pay your debts. As a result:

  • they may not offer you a mortgage at all and 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 thousand 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 will carry out credit reference checks. The last thing they want is a tenant who can’t pay their rent.

If they see a CCJ on your credit record, they are far less likely to let 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

There are a number of jobs which require you to have a clean credit record. This particularly applies in the financial services industry buy can also apply to other professions.

Many employers have to do a credit check before they decide whether to employ you. Having a CCJ against your name may mean that 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.

You need to get the CCJ removed if you can.

There are three ways to remove a CCJ:

  1. Pay it in full within 30 days
  2. Wait 6 years and it will automatically drop off your credit file
  3. Apply to have the judgment set aside.

For more information on these three options, click here.

Unless the CCJ is very recent (ie within the last 30 days) or very old (ie nearly 6 years’ old), your best option is probably to apply to have it set aside.

If the judgment is set aside, it will be as though it was never entered in the first place. All the negative consequences disappear.