What impact does a CCJ have on my credit score?
An CCJ on credit reports can affect your credit history and make it more difficult to get credit in the future.
How long is a CCJ on your credit report?
Even if you pay it off, a County Court Judgment will still be on your credit report for six years. Although it will be labeled “settled”, it will still be visible. It will disappear from your credit report after six years, regardless of whether or not you have paid it.
What happens if my CCJ is not paid?
The creditor can take further action against you if you fail to pay a CCJ. You may have bailiffs come to your home to seize your belongings or assess a charge on your property. Rarely, creditors might file a request for ‘attachment to earnings’. This means that money could be taken from your salary or benefits in order to repay the debt.
Can I improve my credit score by paying off my CCJ?
Although a CCJ settlement won’t immediately improve your credit score it will be less significant as you age. It may take a while before you see a change in your credit score as a result.
Settlement of a CCJ will appear on your credit report as “settled”, which will make it seem better to lenders than an unresolved CCJ.
Is it possible for a CCJ to be removed from my credit record?
To have a CCJ removed from your credit report, you must pay it off as soon as possible but not later than one month. You can request to have the CCJ removed from your credit record by doing this. For a certificate of cancellation, you must present Form N443 to the court that issued your CCJ. Although low-income applicants might be exempt, the application fee is PS15.
You can only remove the CCJ after a month by submitting a petition to have it “set apart.” This is only possible if the paperwork was delivered to an incorrect address or if the creditor has previously paid the amount. For a CCJ application, fill out form N244 with a payment of PS255. The CCJ will not relieve you of the debt. However, the creditor can continue to pursue you for payment.
There are no other options to get a CCJ removed from your credit report.
Contact your creditors if you have difficulty paying your bills or are worried about a CCJ. They will usually negotiate with you to find a payment plan that is affordable before you go to court. You can reduce the damage if you respond quickly and pay it off or arrange a repayment plan. It is not possible to ignore it. This may cause a lasting negative impact on your credit history and make it harder to get credit.
A CCJ can damage your credit but you might be able keep it in good standing in another area. You should verify that you are still on the electoral rolls at your current address, that you have made payments on your existing loans and that you aren’t applying for credit until the problem is resolved.
Continue reading to find out how one missed payment can affect your credit score.