CCJ status

civil12345

Hi, I'm just wondering how much a CCJ status affects my credit rating. I have a CCJ from 2015 that I'm still paying off - around 14 months of payments left and just over 2 years left on my credit history. Would paying this off now... or at least more quickly, improve my credit rating much?

To note I also have a few defaults. All have been satisfied, and are coming off my credit report within the next year or so.

Also, in practical terms, how is the status updated? The CCJ is from an individual rather than a bank or credit card company. I've had no contact with them since the court process.

Any thoughts would be great.

[Deleted User]

CCJs are, as you might expect, very bad news.

A satisfied CCJ, while still not great, will look a lot better to lenders.

DCFC79

Its not your rating that will improve, well it will but lenders dont see it, lenders see your history.

civil12345

Thanks... so satisfied would look better on the history but I understand still bad news. Any thoughts on the second part of my question?

[Deleted User]

Second part?

MovingForwards

I have a CCJ from 2015, with about the same amount of time to finish paying it off.

Banks don't tend to like them, however I have managed to get a CC with a sub-prime provider, interest is under 25% pa but I don't incur interest as I pay my bill off in full. As I've managed my card well I've had one limit increase so far, another one is potentially due within the next month or so.

I'm guessing the CCJ isn't the only thing in your credit history. As that will also impact on who will offer you credit.

What is it you are trying to achieve as we can offer guidance once we know what your end desire is.

[Deleted User]

MovingForwards wrote: »

I'm guessing the CCJ isn't the only thing in your credit history. As that will also impact on who will offer you credit.

Correct - OP also stated they have a few satisfied defaults on their file as well.

civil12345

Apologies, second part is what could I do about ensuring the status is updated to satisfied on my credit file? The issue being its from an individual rather than a bank.

Yes, I have defaults from around the same time that have been satisfied. I did this last year. It improved my recorded and I've been able to get a couple of credit cards, which I pay off in full each month.

Ideally I'd like to be able to get some sort of car finance or lease this year. My income is good and I managw all of my open accounts well, but understand if this is still going to be difficult.

PixelPound

Usually once a debt under a CCJ is paid off the court should be informed. If you get confirmation of the debt being cleared you can show this to the court for them to update it, but the court may want proof from the creditor.

Are you needing credit soon? Paying it off looks better, but not applying for major credit until it drops off is better. If its anything like a mortgage where you need to show bank statements then clearing it early mean your bank statements won't show regular payments to creditor if you cleared over 6 months before applying.