When you are presented with a county court claim, the situation you are placed in is potentially grave. A county court claim may lead to a judgment not in your favor, which might adversely affect your credit score. Dealing with these claims appropriately should be your highest priority.
If you do decide to dispute the claim, your credit rating is still safe. The decision that comes from the judgment will be legally-binding, so if you do lose and are issued a county court judgment, you are required to pay it by law. Only at this point are you actually required to pay the disputed amount, and only under terms that are feasible to your budget.
A county court judgment gone wrong will stay on your record for six years. It’s a heavy burden to deal with, and quite difficult to explain to lenders reviewing your history. Note that you will not have it on your record unless you miss payments that the judge sets for you. This payment is tailored to your budget and should be conceivable in terms of your ability to pay.
In a sense, a CCJ can be seen about as negative as a bankruptcy when regarding one’s credit rating. A bankruptcy often lasts up to ten years, however, so those with a CCJ on their credit won’t have to wait as long to have the entry purged from their name. One will still find in hard in obtaining any type of loan that requires a credit check.
A county court judgment won’t negate all possible chances at getting a mortgage loan. In fact, CCJ mortgages exist that are specialized for those who have a CCJ against their name, yet still have a responsible character that shows they are still otherwise responsible. If there is no other reason to suspect irresponsibility, lenders may charge a bit higher interest rate, but otherwise have no problem in issuing a mortgage loan.
If you had bad credit before you were hit with the country court judgment, you can expect much greater difficulty in getting a mortgage. Bad credit CCJ mortgages do exist, but they will require a hefty deposit and won’t feature the most agreeable terms. Like any lender, there are multiple bad credit CCJ lenders to size up and ultimately decide to do mortgage business with.
In Conclusion
CCJ mortgages aren’t as valued as generalized mortgage loans, so do your best to keep a county court judgment from befalling your name. If it does happen to tarnish your credit, do your best to work towards a better credit until the six year penalty is up.
Learn more on Mortgage Uk CCJs and Mortgage Lender CCJs.
Did you like this? If so, please bookmark it,
