What is a CCJ?
A County Court Judgement (CCJ) is perhaps one of the most serious forms of bad credit information on your file, short of insolvency.
A CCJ is granted to a creditor when you default on a credit agreement, by failing to make repayments on a loan, credit card account, or other form of finance.
When you first miss a payment, you will be told about it and asked to 'catch up' with your payments again. If can't manage this, ask your creditor if you can come to arrangement to restructure your debt in such a way that the arrears are cleared from your future repayments.
If, however, you stop making payments altogether, the creditor will eventually issue a default notice, demanding complete repayment of your debt.
If you don't clear your debt or come to an arrangement within the time period set out in the default notice, then the creditor can apply to the county court for an order saying that you must repay the debt.
This court order or judgement is entered onto your credit file where it will remain for 6 years, whether or not you subsequently clear the debt.
If you repay the debt
If you clear the debt quickly, within 28 days of the judgement being granted, then the CCJ can be cancelled and will not feature on your credit file. However, you need to make sure that the court is aware that the debt has been settled.
If you clear the debt in the future, you can get a Certificate of Satisfaction from the court which can be entered onto your file, which will help lessen the impact on your credit rating as the CCJ will be marked as 'satisfied'.
Can I remove it from my file?
Yes, under certain circumstances it is possible to remove a CCJ from your records, which will improve your credit rating substantially.