Big credit score drop after CCJ removed

FirstParadox

Hi all,

So a little background...

For the first time in my life (aside from a mobile phone) I got credit 7 years ago, this time it was for a car (to accommodate a new baby in the family... wow, that's 3 of them now). 2 days after the typical 1 years warranty the car had a major malfunction and was deemed to be for the scrap pile. I disputed the issue with the car company and they asked if I wanted to return the vehicle at a cost of £250 (towing fee), to which I agreed. They collected the car and then sent me a bill for the damaged car (this was not mentioned over the phone). Another phone call debate with them later and I they said I was responsible for the outstanding balance due to the car being out of warranty (we're talking £7500 here), so I said, fair enough, give me the car back, but they had already sent it to auction so I was out of luck. I refused to pay them for something that I no longer owned so they took me to court where I was issued a CCJ. talk about bad luck.

6 years later, the CCJ has now been removed from my account. However, I have gone from a (Clear Score) of 327 (down 53 points) to 274 overnight as the CCJ was removed.

I have been hoping to get another car as my health has deteriorated and I now struggle to walk/cycle. So I suppose what I am asking is two fold.

1. Why did my score drop after the CCJ was removed. The only other credit on my account is for a Mobile phone with only 5 missed payments  (due to unemployment) (technically just late payments as they where fulfilled at a later date) during Oct 2019 to Jan 2020.

2. Will this low score cause issues in getting finance for another car?



Thanks for taking the time to look, read and reply.

MovingForwards

1. Credit scores rise and fall with any change.

2. No.


The credit score you see is for your benefit, all lenders have their own internal algorithm methods to 'score' an application based on their own criteria.

Please read the pinned post as it explains it all.

Ebe_Scrooge

As above.  Nothing to add, except to suggest this would perhaps be an excellent "pinned" post - as is stated on here time and again, the fictitious score will fall in reaction to any change, good or bad.  If anyone doubts this, the OPs post proves it very nicely - removal of a CCJ is a positive change, yet still the score drops.  QED.

cymruchris

When i had a CCJ removed after a set aside - my score dropped too. That happens a lot. As above - read up the fact that credit scores are just a vague indicator to you - and are not seen by anyone else.

If you have multiple credit accounts that have been kept in good order for several years with no recent black marks - and payments made on time (and more than the minimum payment) there's a fair chance you'll be able to achieve what you want to do. (But as always we are all different - and your own circumstances will no doubt be considered by any potential lender).

Give it a month - and it'll probably go back up a bit - then a bit more the next month - and might take a while to go back to where it was. But it doesn't matter. It's the history you have that matters.

dranzer01

cymruchris said:

When i had a CCJ removed after a set aside - my score dropped too. That happens a lot. As above - read up the fact that credit scores are just a vague indicator to you - and are not seen by anyone else.

If you have multiple credit accounts that have been kept in good order for several years with no recent black marks - and payments made on time (and more than the minimum payment) there's a fair chance you'll be able to achieve what you want to do. (But as always we are all different - and your own circumstances will no doubt be considered by any potential lender).

Give it a month - and it'll probably go back up a bit - then a bit more the next month - and might take a while to go back to where it was. But it doesn't matter. It's the history you have that matters.

How did you get your ccj set aside?

MalMonroe

dranzer01 said:

cymruchris said:

When i had a CCJ removed after a set aside - my score dropped too. That happens a lot. As above - read up the fact that credit scores are just a vague indicator to you - and are not seen by anyone else.

If you have multiple credit accounts that have been kept in good order for several years with no recent black marks - and payments made on time (and more than the minimum payment) there's a fair chance you'll be able to achieve what you want to do. (But as always we are all different - and your own circumstances will no doubt be considered by any potential lender).

Give it a month - and it'll probably go back up a bit - then a bit more the next month - and might take a while to go back to where it was. But it doesn't matter. It's the history you have that matters.

How did you get your ccj set aside?

That question isn't relevant here as the info isn't from the OP and the comment doesn't even relate to the OP's question. It's also really none of our business.

If you need info about how to get a CCJ set aside, you could contact Citizens Advice, or StepChange?

MalMonroe

Credit scores do go down and then up again every time something happens in your financial life. Sometimes I think they move even if you sneeze. Yours will go up again and as we all know, nobody else can see that score. 

cymruchris

dranzer01 said:

cymruchris said:

When i had a CCJ removed after a set aside - my score dropped too. That happens a lot. As above - read up the fact that credit scores are just a vague indicator to you - and are not seen by anyone else.

If you have multiple credit accounts that have been kept in good order for several years with no recent black marks - and payments made on time (and more than the minimum payment) there's a fair chance you'll be able to achieve what you want to do. (But as always we are all different - and your own circumstances will no doubt be considered by any potential lender).

Give it a month - and it'll probably go back up a bit - then a bit more the next month - and might take a while to go back to where it was. But it doesn't matter. It's the history you have that matters.

How did you get your ccj set aside?

I paid the fee - stood in front of the judge - gave her the facts pertinent to my case - and she agreed.