Can I get car finance with a CCJ?
Written by
Joe Towner
Reviewed by
Amy LancashireYes, it's often possible to get car finance with a county court judgment (CCJ) on your credit file. You'll have fewer lenders to choose from, though, and you'll usually pay more interest. Your chances depend on how recent the CCJ is, whether you've paid it, and whether the lender thinks you can afford the repayments.
How does a CCJ affect car finance?
A CCJ is a court order that is issued when someone fails to pay back debt. It stays on the public register and your credit file for 6 years from the date of the judgment, whether you pay it or not, unless you pay it in full within a month.
Lenders check your credit file when you apply, so they'll usually see it. Some will turn you down while a CCJ is on your file, especially if it's recent or unpaid. Others, often called specialist lenders, look at your wider situation, including your income and how you've managed credit since. Experian says lenders usually pay more attention to your most recent credit history, so an older CCJ tends to count for less than a recent one.
You're likely to be offered a higher interest rate than someone with a clean credit history, which means the car costs more overall.
Does a satisfied CCJ make a difference?
It can. Lenders can see whether a CCJ has been paid, and a satisfied CCJ can look better to lenders than an unpaid one, although it can still affect your ability to get credit.
When you pay matters (GOV.UK):
Paid in full within one month of the judgment: you can get it removed from the register altogether
Paid after that: you can get it marked as 'satisfied'. It stays on the register for 6 years, but anyone searching can see you've paid it
To do either, apply to the court that dealt with your case, in writing or using form N443. It costs £19. Once the register is updated, check your credit report has been updated to show the change.
What will lenders look at?
Every regulated lender has to check you can afford the finance before lending to you (FCA). Be wary of any lender offering ‘guaranteed approval’, as every lender must undertake affordability checks before offering credit.
With a CCJ on your file, expect them to look closely at:
your income, which you may need to prove
your regular outgoings and other debts
your credit history since the CCJ
how much you want to borrow
A deposit reduces how much you need to borrow, which lowers your monthly payments and the total interest you pay.
What types of car finance might be available?
Specialist lenders that consider people with a CCJ often offer hire purchase or conditional sale. With both, the lender owns the car until you've made the final payment, so if you fall behind, the car could be repossessed.
Guarantor car finance may be another option. Someone with a stronger credit history agrees to make the payments if you can't. It’s a serious commitment for the guarantor as well as the borrower, and it’s not available from every lender.
How can I improve my chances?
Check your credit reports with Experian, Equifax and TransUnion, and ask for any mistakes to be corrected
Get the CCJ marked as satisfied if you've paid it
Register on the electoral roll, which helps lenders confirm who you are and where you live
Check your eligibility first. Many lenders and brokers use a soft credit check for this, which doesn't affect your credit score
Avoid lots of applications in a short time. Each full application leaves a hard search on your file that other lenders can see
Give it time if you can. Find out how your credit score affects car finance and how to increase your credit score
What should I watch out for?
The total cost: compare the APR and the total amount payable, not just the monthly payment. Here's how APR differs from the interest rate
Stretching your budget: missed payments would add to your credit history problems and could mean losing the car
Upfront fees: be very wary of anyone asking for a fee before you get finance, especially if they contacted you first. The FCA warns this is a common scam
If you still owe money on a CCJ, it may be worth getting free debt advice through MoneyHelper before taking on more credit.
Car finance with a CCJ FAQs
Can I get car finance with a CCJ and no credit check?
It's very unlikely. Lenders authorised by the FCA have to assess whether you can afford the finance, and this usually includes checking your credit file. Be wary of anyone advertising 'no credit check' finance, as the FCA's rules say this kind of claim may be misleading. Some lenders let you check your eligibility first with a soft search, which doesn't affect your credit score.
How long after a CCJ can I get car finance?
There's no set waiting time, as each lender decides for itself. The CCJ comes off your credit file after 6 years, and lenders tend to focus on your most recent history, so the older it gets, the less it's likely to count against you.
Do CCJs work the same way in Scotland?
Scotland doesn't have CCJs. The equivalent is a decree, which also stays on the public register for 6 years unless it's paid within a month or cancelled by the court (Scottish Courts). Northern Ireland has its own register of judgments, which also keeps entries for 6 years.
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
