A County Court Judgment, or CCJ, it can cause significant damage to your credit rating. It becomes quite difficult to find lenders willing to offer to finance when there is a black mark on your credit report.
So, if there is a CCJ showing up on your credit report, can it be removed? And, if it can, what is the process to have it removed?
Unlike bankruptcy, a CCJ does not fall off your credit report. That is the bad news, but there are some ways you can make your credit report more attractive to creditors as time passes.
Since your credit will take a significant hit when this judgment is placed, it is imperative that you act as quickly as possible to rectify this situation with any creditors mentioned in the CCJ.
- Reach out to all creditors and make them aware that you would like to work out payment arrangements.
- Once a payment schedule has been arranged and you have started to make payments, pull a credit report to ensure the status of the judgment has been changed to reflect this.
When the debt is paid in full, have another report pulled to ensure the status of the debt has been changed to “satisfied.”
Try and keeps things current
Why is it so important to have your credit report updated throughout the process? Well, quite simply, it gives you a leg to stand on when dealing with future creditors. Everyone makes a mistake at some point in regards to their finances, especially in a down economy.
However, you need to prove that you are taking the steps to make good on your debt and having the credit report updated will prove that you are doing just that.
Make sure your credit remains perfect after the CCJ
If you are lucky, you will already have a few credit cards that you are able to continue using. Make sure the payments are kept current at all times. If not, apply for a bad credit credit card.
The interest rates will be higher, but only use them for purchases that can be paid off at the end of every month. This will help improve your credit rating and at the same time show creditors that you have turned the corner concerning your financial commitments and stability.
Unfortunately, one small financial mistake can affect your life for years to come. While you cannot erase the mistake, you can show creditors that you are back on track again. Bankruptcies and CCJ’s are not uncommon today, so lenders will sometimes allow a borrower to explain the situation.
If their credit report reflects that they have made every effort to make good on their debt, there is still a very good chance they will once again be able to secure financing, especially after a good deal of time has passed with impeccable credit.