Credit rating after CCJ

Cake1985

Hi,

I received a CCJ in 2009 which has never been settled. Long story short, I feel it was wrongly issued (it was a payment made by an company when I was 19 with the agreement that I would work there for an extended period. I accepted but after 2 years, I could not stay any longer due to disability discrimination and a whole host of other problems). The fine was made to an old address, I missed it...resulted in CCJ. I challenged this numerous times and even tried to pay it off but the company went bust and the owners have moved to Canada (thankfully!) so there has never been anyone to settle with. I've been advised by a solicitor and CAB to just ride it out for the six years...which I've done and it's due to cease next May.

I have never defaulted a payment to any other debts (I have about £500 student credit card debt and £2000 overdraft - which admittedly I do live in). I have a contact phone which is paid in full each month. That's it, no other debt (other than a student loan). Noddle rates my credit rating 1/5 - presume this is the lowest!

I want to work towards getting a mortgage in the next 5 years and will be saving what I can for a deposit. What can I do to improve this rating? Can I do anything to improve it even while the CCJ is still unsettled? When it gets to the six years, what will happen....will it just be settled and I can start rebuilding?

Thanks in advance for your help.

[Deleted User]

The rating is irrelevant. No one sees it but you. All you need to do is manage your account properly going forward.

The CCJ will drop off your file after 6 years.

HappyMJ

The CCJ won't be settled but it will no longer appear on your credit report. My advice is the same as CAB wait the 6 years out and it will drop off. Save as much as you can in the meantime so you have a deposit for your property purchase and use the credit you have wisely. Use credit cards and pay them off in full (or at the very least more than the minimum) and you've a good credit history soon. You can still get credit cards with a CCJ they'll just charge high interest rates but if you pay them off in full each month you don't pay any interest.

Cake1985

Thanks for the advice. Do I need to do anything once it comes to an end? Like email a credit agency or something so it no longer appears or will it automatically go? I think I will start saving and see where I am next May.

Experian_company_representative

Hi Cake1985

The CCJ will come off your report automatically once it is six years old, you won't need to contact us for it to be removed.

This is the case whether it is paid or not.

However it is always a good idea to check your report to make sure you are aware of everything thats recorded, particularly when you are thinking of applying for a mortgage.

Regards
Neil

Tixy

Cake1985 wrote: »

Thanks for the advice. Do I need to do anything once it comes to an end? Like email a credit agency or something so it no longer appears or will it automatically go? I think I will start saving and see where I am next May.

Pay off your ovedraft before you start saving for a deposit. It will look better on your credit files, and will be cheaper.