Credit availability after CCJ

dazzaofdagenham

My wife has a CCJ and a default that fall off her credit file in July this year.

other than these negative factors on her account...her report is clean....nothing paid late and all accounts up to date.
when the CCJ falls off therefore....does she instantly become more credit worthy ?

Thanks

[Deleted User]

Yes.  People without CCJs are more credit worthy than those with, all else being equal.

Waiting4Tomorrow

I wanted to ask the same question but you beat me to it. My CCJ is due to fall off my report on June 3rd. Does anyone know roughly how much my score will improve? I have no other defaults or late payments but the only credit cards i have are Vanquis, Aqua and Ocean. All so called credit builder accounts with ridiculous interest rates and low limits. The total limit for all three accounts is only £5,000. I checked with Clear score and they say my current score is 279. The average score is 414 and in my area it is 440. So i am a long way behind. But this is the only bad thing i have ever had on my report and i pay my bills in full by direct debit every month. Can i expect a major improvement of 200 points or is that a bit optimistic?

Many Thanks

[Deleted User]

Your score will drop a fair amount when the CCJ comes off.  A drop of 100-200 points seems to be fairly standard, but that's ok as no one sees or cares about the score. 

Lenders will see you much more positively without a CCJ.  Don't worry about the ridiculous interest rates on your cards, because you're not paying them.  You're clearing in full each month.  

Now you're back on your feet, time will do the rest.

Waiting4Tomorrow

Thanks zx81. I assume you mean rise (not drop)

[Deleted User]

No.  I mean drop.  It's a major change and credit scores generally react negatively to change, especially on Experian.

That's why you don't have to worry about the score, because it's not a reflection of your credit worthiness and not a factor in lending.

cymruchris

When I had a CCJ removed via a set aside (after it had been there for 3 years) - my imaginary score didn't raise as it happened. Through paying off my credit cards in full every month without fail has made my imaginary score creep upwards - I reached 'Good' for the first time last month, and then opened a new credit card account and dropped back to 'Fair'. The score gives a very rough indication as to your credit history performance, but it changes like the wind. Don't worry about the 'score' - worry about making payments on time, in full if possible, and over a longer period through managing credit responsibly, open another account every 6-12 months using eligibility checkers as your guide. 

dazzaofdagenham

Ok thanks for responses....
we are about to remortgage and Barclays had a offer of less than 1% interest rate.....checked files and the CCJ was there.....will wait until it falls off before checking rates again 

Fighter1986

I would wait, absolutely. I wouldn't expect interest rates to change in the next couple of months either.

Under 1%. That's fab. You must have sizeable equity. This will increase your creditworthiness for a mortgage too  

dazzaofdagenham

Interested in your thoughts on why we should wait....Bank of England’s interest rate is lowest ever and I really can’t see interest rates in the country at least going negative.

have sizeable equity yes and wanted to borrow extra for daughter going to university etc..

D3xt3r5L4b

You shouldn’t borrow on your mortgage...