What Can You Do If You Need A Loan But Have a CCJ?
County court judgements (CCJs) are handed down for all sorts of reasons, sometimes because you might have fallen behind with your rent or because you are a sole trader and owe one of your suppliers for an invoice they have issued which is yet to be paid. The best way to get rid of a CCJ is to comply with the order. This might mean sticking to your agreed repayment plan or even arranging to settle the entire debt. After that, borrowing should become that bit easier since some lenders will rule out anybody who has one.
However, even if you have paid off the debt that the CCJ is related to, it can reflect badly in your credit rating. As such, loans will sometimes be more expensive than they otherwise would be or you’ll still be turned down. So, whether you have a CCJ against you at the moment or have recently settled one but have yet to rebuild your credit rating, options for obtaining finance can seem limited. What are some of the best ways forward?
Doorstep Loans
Unlike traditional borrowing, doorstep loans are arranged face-to-face and settled in-person, too. This means they have a very different character from the rather impersonal experience of applying for credit online by filling out a form with your details or ringing up a high street lender. Doorstep loans used to be very commonplace before the advent of the internet and mass communications. Today, they tend to be run by smaller, friendlier family firms that serve the local community. That said, they will still need to be registered with the Financial Conduct Authority if they are to lend money.
The good thing about doorstep loans is that because they are often settled with weekly collections to pay off the debt, lenders are more willing to provide finance to people with poor credit histories including current or former CCJs. Cockle Finance doorstep loans in Essex can be arranged in cash so you can spend the money you borrow immediately. You can also compare various doorstep lenders easily on doorstep loans compared.
Mortgage Applications and CCJs
Many mortgage lenders will not provide lending to people with CCJs. There are some specialist mortgage brokers who can handle such applications and find amenable lenders, however. This can help if you have a CCJ and are applying jointly for a mortgage with your partner who does not have one, for example. You may need a larger deposit and face higher interest rates if you have a CCJ but it can be done with the right mortgage provider.
Credit Card Borrowing
Credit card issuers have their own rules over who can take one out and who can’t so you may find that your CCJ results in your credit card application being turned down. However, this is not always the case and it is certainly possible to borrow using a credit card even if you have a court order saying you owe someone else money. If you already have a credit card, then you can continue to use it after a CCJ has been handed down. However, borrowing with a credit card is often very expensive unless you can settle your bill when it arrives. Instead, it is often better to seek out other forms of credit, such as doorstep loans.