Credit eligibility is a very complex process, with some elements of subjectivity with regards to which financial factors are prioritised over others.
However, outside of bankruptcy itself, a county court judgement is one of the single most damaging blemishes on a credit record, one that can reduce the chances of favourable credit terms or require the assistance of CCJ mortgage specialists to find an eligible product.
A CCJ, once issued, can stay on your record for up to six years unless it is disputed or a counter-claim is made, and this can cause huge damage to a person’s credit.
However, what happens if you pay the amount that is owned on the CCJ depends on when that amount is paid.
Typically, once a CCJ is issued, you have 28 days (the deadline is noted on the letter of judgement itself) to pay the full amount owed, dispute the claim or organise an alternative payment plan.
The only exception to this is in cases where you do not owe the money or did not receive the claim that says you did, where the judgement can be cancelled and removed from the record after this date, which often involves a day in court.
If you do not or cannot pay back the full amount owed at the time, but either complete the payment plan or pay the full amount at a later date, the CCJ will remain on file for the full six-year period but will be marked as ‘satisfied’, meaning that it has been paid off.
How much this can affect your chances of getting credit depends on the lender, as some providers will see any default or CCJ as severe enough to refuse favourable terms, and others will look positively that the debt has been paid off, especially if this comes in conjunction with otherwise healthy credit habits.
