A County Court Judgment or CCJ are court judgments for money. They are registered with the Register of County Court Judgments and do effect a persons credit.
A CCJ can be handled quite easily by simply paying it off, however, if you can not afford that then you may end up with a mark upon your credit, or worse, having a lean on your property.
A CCJ loan is a loan offered by a lender despite a CCJ. Ideally, a person should pay off their CCJ as soon as possible to get it marked satisfied in the register, but if that is not possible a person can still find lending sources willing to extend a CCJ loan.
A County Court Judgment loan is just like any other bad credit loan. The lender is taking a risk because you have been proven, and in this case, in a court, that you do not pay your debts as agreed upon.
This means the lender is going to retaliate by charging higher interest and fees. A CCJ loan is going to be costly.
There are quite a few lenders who will extend a loan to people with a County Court Judgment. If a person is a homeowner they will have more of a chance of securing a County Court Judgment loan. This is because they can use their home to secure the loan.
If their property has a lean against it in conjunction with the CCJ, though, they will unlikely be able to use it to secure a loan.
Even if a person does not own a home or can not use their home to secure the loan, there are still CCJ loan options. Lenders will want to make sure, though, that the person can afford to borrow the money and pay back the loan. They will likely request documentation to prove income and they will want to see a very steady earning record.
Some things that could slow down a CCJ loan request are period of unemployment, self employment, commission income and other sources of income that are not steady.
This is because the lender is looking for a good source of income that will prove the person will not have difficulties paying on schedule.
A CCJ loan is going to carry a high interest rate and will often be a smaller loan. A person is unlikely to be able to make a big purchase with a County Court Judgment loan. However, a CCJ loan is a good way to build up credit.
A person can take out a small CCJ loan and pay it back according to the terms, which will then reflect good on their credit. Then they can secure a traditional loan in the future.
A County Court Judgment loan is something that may be the only option for someone with a CCJ. The best bet for someone in this situation is to get a County Court Judgment loan to pay off their CCJ debt.
Then will they not only be improving their credit through a loan, but also get their CCJ marked as satisfied in the registry, so they will really be improving their credit and making future lending options very good.