To pay off CCJs early or not, and the impact on credit files

jjhardy

Hi everyone. I am coming to the end of paying off two CCJ debts. I will finish paying one next April, and one in approx 12 months.

The CCJs were incurred in 2019 and 2020. Therefore they'll 'drop off' my credit files in 2025 / 2026.

I've been debating whether it is worthwhile paying back the full remainder of the balances now rather than waiting until next year. I could afford to pay them off now, but I could also make use of those funds elsewhere. I'm not certain if there is any value in paying them off early, given that the CCJs will remain on my credit files for another few years anyway? Will settling the accounts in full have a positive affect on my credit files, even though the record of the CCJs remains?

I probably won't be remortgaging until 2027, so I am content to just ride out the CCJs slowly. But I can't help wonder if I clear them early how much benefit this would bring, especially if I did want to remortgage early (unlikely, but you never know) (clearly I'd still have the CCJs on the credit files if I did try to remortgage early, but at least they would be showing as 'settled'?)

The other factor which may or may not impact all of this are the other two negatives on my credit files, which are two defaulted credit cards to the tune of 8k and 10k. These I have payment plans set up for and plan to clear them both off in the next two / three years, but as these will also be giving my credit worthiness a hard time, I'm wondering how much value clearing the CCJs early would bring.

Hope that all makes sense. I would value any experienced feedback  

TheSpectator

I think the most recent defaults are going to be more damaging than the old CCJ's. They are actual defaults and not arrangements to pay.

Personally I would focus on clearing the defaults. Normally the adage would be a satisfied CCJ is better than not but that assumes no further black marks.