If you’ve had a County Court Judgement (CCJ) taken out against you, it may be difficult for you to find a loan. This could be for any reason… perhaps you were taken to court for not repaying a loan. We understand that emergencies can arise and your personal circumstances can change. This can cause a few missed payments. However, at PMLoans as a direct lender and a broker, we work with a panel of lenders, who offer loans for bad credit histories.
What are CCJ Loans?
If you have a payment for a loan, credit card or bill and have not settled it/repaid it, the lender can choose to take you to court. This will issue a County Court Judgement or CCJ for short. A CCJ loan is specifically for people who have had a CCJ and are looking to borrow money. A CCJ will stay on your credit file for 6 years. In most cases, people who have a CCJ might have trouble getting their hands on another loan as lenders and brokers won’t trust that they will repay their borrowed loan.
However, if you have satisfied your debt, have a steady income and have paid off other forms of recent credit on time too, you can be in a good position to apply for a CCJ loan and access the finance you need. You will have shown a good credit score as it will be building back up due to your finances.
Are CCJ Loans expensive?
Lenders may charge a higher rate of interest. This is due to the higher risk when lending to people who have a CCJ. If you do decide to take a CCJ loan, ensure to repay the loan on time and in full. The last thing you want is to end up in further difficulty.
Thankfully, the Financial Conduct Authority has set out rules that cannot charge more than 0.8% interest per day on the loan and you will never pay more than double the loan amount including interest and fees.
Can I get a CCJ Loan?
Yes, you can get a CCJ loan with a direct lender or a broker. If you have satisfied your debt, are currently employed and paying off other debts on time too. Or equally, the 6 years have passed and the CCJ has been removed from your credit file. As mentioned previously, some lenders might have extra caution when lending to you, others might not have a problem with it and others won’t lend to you at all.
If applying through us, we will be able to send your application to the UK’s largest panel of lenders. Meaning that your chances of being accepted are a lot higher. Especially if you were to apply to multiple individual lenders. It will also save you a lot of time. If you’re ready to apply for a CCJ Loan, be sure to complete our online application form via the apply now button below.