CCJ Error and Issues with Credit Cards

Whitelight44

Earlier this year I got a CCJ in error due to Aviva Car Insurance not paying someone whom I had a car accident with. They admitted the error and gave me a letter to say it was their error and £500 compensation and said it was removed from my credit reports (which is has been). The set aside is in a long delay of court things.

When it happened all my credit card credit was reduced to the bare minimum. So I have had to ring them up and try and prove it wasn't my error. MBNA increased the limit again but I've lost the offers. Barclaycard won't let me apply for an increased credit limit for 4 months now, even though I have proven it isn't my error.

I am moving house and I am worried about this and costs, I have been advised it won't affect the mortgage application but as a back up to the house move as now I am paying interest on cards is it a good idea to apply for another Credit Card and an offer, I am a bit weary on doing this incase it is refused and incase it affects my mortgage application.

I've never had any issues with credit cards, offers or anything in the past until this mistake.

DE_612183

it's not good under any circumstances to apply for credit just before taking out a mortgage.

Brie

but as a back up to the house move as now I am paying interest on cards

I don't understand.  Why would you pay interest on the cards intentionally?  Better to pay them off.  

CliveOfIndia

I concur with the previous comments.  Firstly, applying for any new credit is the last thing you want to be doing in the run-up to a mortgage application.

Whitelight44 said:

as a back up to the house move as now I am paying interest on cards

As mentioned by Brie, do you mean you're intentionally paying interest on the cards?  If so, you need to stop doing that immediately.  It'll do nothing to improve your credit files (if anything, it'll have a slight negative effect), and why on earth would you want to pay interest when you don't have to?

The biggest single hurdle in the mortgage application is going to be the CCJ.  I'm assuming, from what you've said, that your mortgage lender is satisfied that it was an error and is in the process of getting set-aside?  If that's the case then you need do nothing further (other than making sure you're clearing your credit cards in full every month).  In common with any mortgage application, if you're able to reduce any outstanding debt you're currently carrying, that will be a help.  But don't start trying to fiddle about with new credit card applications, that'll do far more harm than good.

Whitelight44

Thanks all.

I didn’t explain myself very well. I am only paying interest now due to the credit card with my offers at 0% doesn’t allow me to move anything to it and the reduced limit due to the CCJ. I wouldn’t do it intentionally. 

The CCJ is being set aside (4 month court delay apparently) and doesn’t appear on the credit reports but has affected everything. Mortgage broker said it shouldn’t make a difference which is okay but currently I can only assume that the history of a massive drop in my credit report is why all my available credit needed for emergencies has been reduced. 

Nasqueron

Whitelight44 said:

Thanks all.

I didn’t explain myself very well. I am only paying interest now due to the credit card with my offers at 0% doesn’t allow me to move anything to it and the reduced limit due to the CCJ. I wouldn’t do it intentionally. 

The CCJ is being set aside (4 month court delay apparently) and doesn’t appear on the credit reports but has affected everything. Mortgage broker said it shouldn’t make a difference which is okay but currently I can only assume that the history of a massive drop in my credit report is why all my available credit needed for emergencies has been reduced. 

When you say "massive drop" - do you mean the fake score you see? If so, ignore that, it plays no part in any lending decision

MEM62

Whitelight44 said:

Mortgage broker said it shouldn’t make a difference which is okay but currently I can only assume that the history of a massive drop in my credit report is why all my available credit needed for emergencies has been reduced. 

Dealing with emergencies using credit is not a good policy.  You need an emergency fund for this.  As you have discovered, credit is not always reliably available.   

DullGreyGuy

Whitelight44 said:

Thanks all.

I didn’t explain myself very well. I am only paying interest now due to the credit card with my offers at 0% doesn’t allow me to move anything to it and the reduced limit due to the CCJ. I wouldn’t do it intentionally. 

The CCJ is being set aside (4 month court delay apparently) and doesn’t appear on the credit reports but has affected everything. Mortgage broker said it shouldn’t make a difference which is okay but currently I can only assume that the history of a massive drop in my credit report is why all my available credit needed for emergencies has been reduced. 

Normally insurers wouldn't ask for it to be set aside if they agree they're liable and it's their administrative error it wasnt defended and/or paid on time. They put their hands up to the Register that it is their not your fault and the record is removed from your name. 

Getting a case set aside not only requires them to show that they can win the retrial but also have an exceptional reason that neither you nor they could have responded to the initial case