Life after a CCJ

dbsfc

Hello all

I have managed to grow up and take control of my finances and am in a good position currently.

The only negative I have on my credit file is a CCJ which has 20 months until it drops off. It was for £1244 and resulted from an historic credit card which went through default and then a CCJ so over ten years old now.

It is fully paid off and marked as satisfied and has been for two years. No issue with it.

My question is: How significant will the positive effect be when it goes?

I have a mortgage (50% equity), a current account, two credit cards (£9000 total limit, 20% in use), an up to date phone contract and Virgin media account. Over 8 years since any missed payment at all so, in all, decent shape.

There is just the constant negativity of the CCJ being present and the effect it has on obtaining standard credit such as 0% deals on furniture, kitchens etc.

I'm hoping opportunities to become more credit worthy are almost an overnight achievement after December 2019. Does anyone have any knowledge or experience of this.

I've gone on, many thanks in anticipation of any reply

Ps. Any profile checkers seeing my other post. That was written on behalf of my sister who is not linked to my credit file at all.

sultanabran

dbsfc wrote: »

My question is: How significant will the positive effect be when it goes?

Well, in general it's a positive. You might still be refused for credit, just because every lender has different criteria and there's no right to get credit. I would imagine though in general terms, provided your overall finances remain as they are, then you'll have a good chance of getting the good deals. There are never any guarantees.

I imagine whoever your CCJ is with will still have details of it internally so even when its dropped of your files, an application with them can be refused on the grounds of your past conduct with them.

GazNicki

I noticed a massive improvement in my overall report once my past CCJs had cleared. Now, managing my debts properly and using my credit reports as guidance, my credit file is looking quite alright.

Nasqueron

Just remember whatever the "score" changes to is irrelevant. Losing bad markers like a default or CCJ will help make you more attractive to lenders when they do their own credit check on you. Do note the defaulted lender may have an internal blacklist of people they won't lend to in the future so you may not get credit from them again for obvious reasons

sourcrates

Nasqueron wrote: »

Do note the defaulted lender may have an internal blacklist of people they won't lend to in the future so you may not get credit from them again for obvious reasons

There is great debate as to whether these so called "black lists" actually exist.
Certain call handlers have said this to some clients in the past, but this is likely to be mere rumor between the call center staff, than actual fact.

I would say that peoples situations change so fast these days, that keeping separate records for anyone who has ever defaulted an account with them would stretch to a very long list indeed.

It is more likely to be mere rumor, and that the normal 6 years and everything is forgiven, would be the norm.

I owed my old bank over £26.000 when i entered my IVA, 6 years later i re-applied for a new bank account with them, and was accepted straight away with a 5k OD.

dbsfc

Thank you all.

I deliberately left the word score off my post. I understand lenders form their decisions by viewing information.

Seems like there is light at the end of the tunnel!

Ironically a student barclaycard is the source of the CCJ and I have a 5k limit card with them currently.

Again, thank you for your responses

Nasqueron

sourcrates wrote: »

There is great debate as to whether these so called "black lists" actually exist.
Certain call handlers have said this to some clients in the past, but this is likely to be mere rumor between the call center staff, than actual fact.

I would say that peoples situations change so fast these days, that keeping separate records for anyone who has ever defaulted an account with them would stretch to a very long list indeed.

It is more likely to be mere rumor, and that the normal 6 years and everything is forgiven, would be the norm.

I owed my old bank over £26.000 when i entered my IVA, 6 years later i re-applied for a new bank account with them, and was accepted straight away with a 5k OD.

A customer service agent doesn't make decisions on things like that, they would simply get a message saying "computer says no". Why shouldn't a firm hold a black list? There are certainly people who have tried to get credit from firms who they defaulted on in the past and been rejected despite their supposed perfect record after years. Frankly if a firm is generous/dumb enough to lend to someone who stiffed them for thousands in the past that is their own commercial judgement.

A4445

So I've had problems in the past, been bankrupt. I've found laters forgiving. The only lender that wouldn't give me a second chance is Argos. I owed the Lloyds banking group allot and haven't tried to apply again with them. So some lenders do have lists. It's fair enough if they want to say no if a debt hasn't been repaid in the past, for most if just business they may think they can make money out of me!

MadMat

Anecdotal evidence at most but back in my irresponsible past I defaulted on a current account with Abbey National - recently when using a credit broker to finance my new taxi the best offer I got was from Santander, so I doubt there is an internal blacklist there!!

Mat

Candyapple

sourcrates wrote: »

There is great debate as to whether these so called "black lists" actually exist.
Certain call handlers have said this to some clients in the past, but this is likely to be mere rumor between the call center staff, than actual fact.

I would say that peoples situations change so fast these days, that keeping separate records for anyone who has ever defaulted an account with them would stretch to a very long list indeed.

It is more likely to be mere rumor, and that the normal 6 years and everything is forgiven, would be the norm.

I owed my old bank over £26.000 when i entered my IVA, 6 years later i re-applied for a new bank account with them, and was accepted straight away with a 5k OD.

Amex seem to hold a list, Barclaycard I have heard can be hit and miss:
https://forums.moneysavingexpert.com/discussion/comment/69979991#Comment_69979991
https://forums.moneysavingexpert.com/discussion/5593161
https://forums.moneysavingexpert.com/discussion/5474215

A4445

Barclaycard are hit and miss, I defaulted with them. I applied again 7 years later and they gave me a card no problem. I applied for a second card and they said no and referred to my previous poor account conduct. I tried again 6m later and the application for a second card was approved. Maybe it depends on the underwriter or they needed to meet new account opening targets!:rotfl: