With a bit of focus and some smart decisions, you can rebuild your reputation and secure car finance with a CCJ. 

This guide is all about putting you in control. From rebuilding your credit score to working with specialist lenders to find a finance plan that fits your situation, the road to recovery starts here. 

What is a CCJ and how does it affect your credit?

The first step? Understanding exactly what a CCJ is and why it’s dragging you down. A CCJ is a formal notice from the County Court, issued when a creditor takes legal action to recover a debt. It’s a visible record of missed payments and a clear red flag for lenders.

How does it impact your credit?

How much does a CCJ affect your credit score? It can not only lower your credit score but also make lenders cautious. But while it highlights past financial struggles, it doesn’t define your future. Many lenders will look at your current ability to repay debt instead of focusing solely on the CCJ.

Can you still get car finance with a CCJ?

Yes, you can still get car finance with a CCJ. The legal order may raise some concerns with lenders, but it doesn’t close the door completely.

What lenders consider beyond your CCJ

A CCJ isn’t the only factor considered by lenders. They’ll review a range of variables, including:

• Your income
• Affordability of your chosen car
• Job stability
• Other financial commitments

Understanding soft credit checks and pre-approval processes

Soft credit checks are a helpful first step. They give lenders a snapshot of your financial situation without affecting your credit score. Soft checks are a good way to explore your options without worrying about further damage to your credit score. 

Pre-approval is another useful tool. It can be used to get a clear idea of how much you can borrow and the likely terms, so you can plan ahead with confidence and know exactly where you stand before committing to a full application.

Higher interest rates and stricter terms

It’s possible to secure car finance with CCJs. But it’s important to approach the process with a clear understanding of what to expect. An approval letter may feel like a win, but it’s only part of the bigger picture.

For example, you may face higher interest rates or more rigid repayment terms when applying for car finance with a CCJ. Why? Because lenders often adjust these conditions to offset the risk. While this might lead to larger monthly payments or shorter loan periods, it offers a chance to secure finance and rebuild your credit. Over time, consistent payments can help improve your profile and open the door to better deals.

Specialist lenders can help

Specialist lenders work with people who have CCJs. Instead of focusing on your past, they assess your ability to manage repayments now. Soft credit checks are a good way to test the waters with specialist lenders and explore options without harming your credit score.

Want to know more about whether you can get car finance with a CCJ? Visit our specialist lenders page to learn how My Car Credit can connect you with the right finance plan.

Steps to improve your credit score after a CCJ

Rebuilding your credit score takes small, consistent steps. Here’s how:

Review your credit profile

Check your credit report through ClearScore or Experian. Identify errors or outdated information and get them corrected.

Build positive credit habits

Regular payments and good borrowing habits improve your score:

• Set up direct debits for timely bill payments
• Use a credit builder card responsibly
• Keep your credit usage below 30% of the available limit

Pay off outstanding debts

Clearing debts shows financial responsibility. Start with high-interest debts and work through the rest. This is one of the best ways to boost your chances of securing bad credit CCJ car finance. 

What can you do today to start?

Rebuilding your finances doesn’t have to be overwhelming. Start with these simple actions:

Keep old accounts open: Maintain credit history length by keeping older accounts active. 

Create a budget: Plan your expenses to prioritise debt repayment.

Automate payments: Set up direct debits to avoid missed payments.

Boost income: Consider part-time work or a side gig to clear debts faster.

Every step, no matter how small, brings you closer to financial recovery. The goal? To increase your chances of securing car finance with CCJs. 

How long does a CCJ stay on your credit file?

How much does a CCJ affect your credit score in the long run? A CCJ stays on your credit report for six years. Over time, its impact fades, especially if you adopt good financial habits.

Cleared vs unpaid CCJs

• Cleared CCJs: Once paid, they’re marked as “satisfied,” which looks better to lenders.
• Unpaid CCJs: These remain “unsatisfied” and signal unresolved issues to lenders.

Taking action to clear a CCJ improves your credit profile and boosts lender confidence.

What clearing a CCJ means for your car finance prospects

Clearing a CCJ shows lenders you’re serious about improving your financial situation.

Benefits of clearing a CCJ

• Increased confidence: Lenders see responsibility and reliability.
• Improved credit score: A “satisfied” CCJ helps your score recover and increases your chances of securing loans for CCJ bad credit. 
• Better finance options: Clearing your CCJ can lead to more favourable terms.

Next steps for a smooth car finance application

Here’s how to set yourself up for success:

1. Research lenders: Look for those who specialise in bad credit or car finance with a CCJ.
2. Calculate affordability: Use our car finance calculator to understand your budget.
3. Apply with confidence: Contact My Car Credit for expert guidance.

With the right approach to car finance recovery, you can leave your CCJ in the rearview and work towards securing a car finance solution that fits your needs. Apply today and let us help you discover how you can get car finance with CCJs and take the next step towards car ownership.