How much does a CCJ affect your credit file?

At Loqbox, we know that facing a county court judgment (CCJ) can be a challenging experience. 

You might already know that having a CCJ affects your credit score, and you might have discovered the impact it can have on your creditworthiness. But we’re here to tell you that there is still hope if you have one on your credit report. 

Today we’ll take a look at exactly what county court judgments are, what impact they have on your credit score, and how long they stay on your credit report.

What is a CCJ and what does it mean for your credit report?

A county court judgment is a court order issued in the UK which can affect your creditworthiness. It’s typically given when you fail to repay a debt and the lender takes legal action to recover the money owed. When acknowledged by the court, that legal action is known as a county court judgment. Once given, it’s recorded on your credit file.‍

CCJs and credit scores are connected because credit scores reflect your creditworthiness. They are calculated by the three main credit reference agencies (CRAs) in the UK: Experian, Equifax, and TransUnion. If you’re worried about a CCJ, you can check your reports with each CRA (the check won’t impact your credit scores).

When you are issued with a county court judgment, you’ll usually have an opportunity to pay back the debt straight away, or perhaps work out a repayment plan where you pay it back in instalments. It’s also possible to dispute the debt if it’s incorrect, or to even make a claim against your creditor if you believe they owe you money.

CCJs are serious and shouldn’t be ignored. The court can take action to cover the costs of your debt by repossessing your belongings, so it’s important not to bury your head in the sand.

Who can see a county court judgment on my credit report?

CCJs are visible to lenders, landlords, and anyone else conducting a credit check on you, when you apply for things like loans or mortgages. They play a big part in your credit report and that impacts whether lenders will allow you to borrow money, or if landlords will trust you to stick to your rental obligations.

However, it’s possible to avoid a judgment being recorded on your report — and therefore avoid damaging your credit score — by paying off your debt or successfully disputing it within one calendar month of issue. However, you might still see a negative impact from any defaults that led towards your CCJ.

You can find out more about how missed payments affect your credit score here. 

CCJs do show that you have previously missed repayments and therefore they don’t shine a very favourable light on your credit report and in turn, your score. It’s worth noting though, that while CCJs are visible on your credit reports, lenders don’t actually see your credit scores. They’re just for you, to summarise your creditworthiness.

Does a soft credit search show a county court judgment?

Yes, even a soft credit search can reveal the presence of a CCJ on your credit file. This means that potential lenders conducting preliminary checks will be aware of your financial hiccup. You can find out more about hard vs soft credit searches here.

How much does a CCJ affect credit scores?

Unfortunately, the impact on your credit score, and on your credit report, is substantial. It can lead to a significant decrease in your score, making it harder to secure loans or credit in the future. There isn’t a set number of points though and any defaults you might have had in the lead up to CCJ can have an even bigger impact as well.

How long does a county court judgment stay on your credit file?

If you do have a CCJ you’ll probably be worrying about how long it will stay on your credit report and affect your credit score. Typically, you can expect it to stay on your credit file for as long as six years from the date of the original issue, creating a lasting imprint on your credit history.

At the end of the six year period, regardless of whether you have repaid your debt or not, the CCJ will be removed from your credit report and your score will usually improve. At this point, you will probably become a much more eligible candidate for new lines of credit, assuming you’ve been responsible with your finances in the meantime

Will a satisfied county court judgment affect my credit?

Settling a CCJ shows responsibility, but unfortunately it doesn't erase its impact. Records will still be visible on your credit file for six years, potentially influencing decisions that creditors make. However, as mentioned above, if you’re able to settle the debt within one month of judgment being issued, or successfully dispute it, the mark will be fully removed from your credit report.

Will my credit score go up when my county court judgment is removed?

Yes, the good news is that your credit score is likely to see a big improvement once the CCJ is removed from your credit file, or when six years have passed. If you’re wondering how much it will increase, there’s no standard rule. Rebuilding credit takes time and consistent financial responsibility.

Can you have a good credit score with a CCJ?

Maintaining a good credit score with this on your history is challenging, but not impossible. If you demonstrate responsible financial behaviour and manage other aspects of your credit file positively, you can work towards a better score. Fortunately, we’ve got a fast and proven way to build your credit score that can help if you’re struggling with a CCJ.

Loqbox members see their credit scores grow by 200 points on average across 12 months. The best part is you don’t need a credit check to get started and you can grow your savings as you go. 

Improvements to your credit score are not guaranteed.