A CCJ, or County Court Judgement is an order issued by a county court, which tells you how much you should pay and you should pay money owed to a creditor.
But how does a CCJ affect your credit record?
There is a nationally held register of all CCJs that is known as the Register of Judgements, Orders and Fines. This records many CCJs issued and they remain there for six years. In order for a CCJ to appear on there, however, it must have been issued in default where no defence was entered at all (that is to say that the debtor failed to submit Admission Forms), defended and settled with payment being made in installments, or enforcement action must be being taken.
If you pay up in full within a month of receiving a CCJ, you will not be held on the register. If you pay in full beyond this time, your CCJ remains for six years but is noted on the register as having been ‘satisfied.’
If your CCJ appears on the register, the information that will be held about you is your name and address, date of the CCJ, amount it relates to, whether or not the CCJ has been satisfied and also the case and court number.
If you have a CCJ appearing on the register this will have a detrimental effect on your credit score.
Unfortunately, a CCJ rings alarm bells with many creditors and can make it particularly difficult to get credit. Even in cases where an individual with CCJs is able to obtain credit, the interest is likely to be much higher than that offered to those without such judgements.