CCJs and Improving Credit Score

RC2012 · 16 October 2018 at 4:38PM

I have two CCJs on my credit file. They were added in December 16 and January 17 (I had been and still was battling mental health issues then, so it's very frustrating for me now that I'm in a much better place!)

I have been paying both companies a small payment of £20 each per month while I got myself back on my feet. I'm now set on paying off all my debt. I have some credit cards in addition to the CCJ debt.

I am wondering where I'm better throwing my extra cash in terms of the 2 types of debt? If I make extra payments to the CCJ debt and clear those will my credit file look better? Or should I focus on the credit cards first as they're incurring interest? I have a whatsthecost.com sheet set up so that I can snowball the cards so have a very clear plan there.

If I contacted the CCJ companies with an offer to settle in full (for a reduced balance) would that look worse on my credit file than just paying it off in full?

Sorry for all the questions, just trying to work out my best strategy!

Thanks in Advance

[Deleted User] · 16 October 2018 at 4:56PM

It depends on your objectives. If something like a mortgage is on the horizon, you should settle the CCJs. If not, you may as well focus on the cards and save in interest.

RC2012 · 16 October 2018 at 8:03PM

Thank you, I'd love a mortgage but didn't think that'd be an option with the CCJs?! My income is high enough for me to get a property and I hate renting, I just assumed it wAs a lost cause

DCFC79 · 16 October 2018 at 8:10PM

Remember your score is only seen by yourself. Lenders see your history.

A broker will tell you if its possible or not to get a mortgage, personally Id do as zx says and settle the CCJ's, might open more doors for you in terms of lower rates but ask a broker who deals with adverse credit files but its your choice.

CCJs and Improving Credit Score

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free