What is a CCJ?
A CCJ stands for County Court Judgement. You may have an outstanding CCJ if you have owed somebody money, and a court rules that you have to pay it back. Outstanding CCJs will appear on your credit report and will worsen your credit score. Your credit information will be checked by lenders when you apply for a loan and an outstanding CCJ will negatively affect your chance of getting a loan.
What happens when you get a CCJ?
If you receive a CCJ from a court, you will receive notice of it in the post and it will appear on your credit record as well. After the judgment, you have 30 days to pay it and it will be removed from your permanent record.
A CCJ that you do not satisfy within 30 days of it being posted will stay on your credit profile for six years, even if you pay it off during this time. After six years they will be removed. You may be unaware that you have a CCJ, and you can dispute them if you believe they are an error.
Having an outstanding CCJ does not necessarily mean that you are unable to get a loan. If your business shows that it has strong financials, then some lenders will consider your application despite the outstanding CCJ. Each lender has different criteria, and some lenders specialise in helping businesses with bad credit histories.
You can understand your credit score and see if you have any outstanding CCJs by using a report provider such as CREDIT PASSPORT. Funding Bay is partnered with Credit Passport, and their report will give you an overview of your debts, defaults, balances, and if there are any CCJs and give you an insight into how lenders view your business.
Get in touch with us for your company’s financial needs.
