Can I Get Car Finance with a CCJ?
Yes, having a County Court Judgment (CCJ) does not automatically stop you from getting car finance. Some lenders, including direct lenders who specialise in poor credit car finance with CCJs and defaults, will consider applications from people with CCJs, defaults, and other adverse credit. The outcome depends on the lender, the size and age of the CCJ, and whether your overall financial situation shows you can manage repayments.
Many people assume a CCJ automatically means they will be declined. In reality, lenders assess applications differently, and some specialist lenders consider affordability, income and current circumstances alongside previous credit issues.
This guide covers what you need to know before applying.
A County Court Judgment is a court order issued when a person has failed to repay a debt and the creditor has taken legal action. If the court rules in the creditor's favour, a CCJ is registered against you on the Register of Judgments, Orders and Fines.
CCJs stay on your credit file for six years from the date they were issued, regardless of whether they have been paid. During that time they are visible to any lender who runs a credit check on you, and they signal to lenders that you have previously failed to meet a financial obligation.
A CCJ does not make you ineligible for credit permanently. Many people with CCJs are still able to access finance, though the terms available may differ from those offered to borrowers with a clean credit history.
Yes, having a CCJ will affect how lenders assess your application, but does not automatically mean you will be declined.
Most mainstream banks and high street lenders use automated credit scoring systems that will decline applications automatically if a CCJ is present. This is why many people with CCJs are turned away by banks but may still be approved elsewhere.
Specialist lenders and direct lenders who focus on poor credit and CCJ car finance take a more manual approach to underwriting. Rather than relying solely on a credit score, they look at the full picture: the size of the CCJ, when it was issued, whether it has been satisfied, your current income, and whether your outgoings suggest you can comfortably afford the repayments.
A single older CCJ from several years ago is viewed very differently to a recent CCJ for a large amount. The more time that has passed and the smaller the original debt, the less weight it is likely to carry in a lending decision.
Yes, you may be ale to get car finance with a satisfied CCJ.
A satisfied CCJ is one that has been fully paid. If you pay the full amount within 30 days of the judgment being issued, the CCJ can be cancelled entirely and removed from the register. If you pay after 30 days, the CCJ remains on your file but is marked as satisfied.
A satisfied CCJ is generally viewed more favourably than an unsatisfied one. It shows that despite the original debt, you did eventually meet the obligation. Some lenders who would decline an unsatisfied CCJ will consider applications where the CCJ is satisfied, particularly if some time has passed since the judgment.
If your CCJ is unsatisfied, it may still be possible to get finance, but the pool of lenders willing to consider your application will be smaller and the interest rate offered may be higher to reflect the additional risk.
Yes, as while some lenders require a guarantor for poor credit applications, not all do. Direct lenders who specialise in adverse credit car finance can often lend without a guarantor because the loan is secured against the vehicle. Under a hire purchase agreement, the lender retains ownership of the car until the final payment is made, which reduces their risk compared to an unsecured loan.
AutoMoney Trust is a direct lender and does not require a guarantor. We consider applications from customers looking for car finance with CCJs and defaults, as well as other adverse credit marks on their file. You can check whether you are likely to be approved using a soft search that leaves no mark on your credit file on our apply for car finance page.
It may still be possible to get car finance if you have both CCJs and defaults on your credit file, although having multiple adverse credit markers can make obtaining finance more difficult.
Defaults are recorded when you miss a set number of payments on a credit account and the lender closes the account. Like CCJs, they stay on your file for six years.
Having both a CCJ and one or more defaults makes a mainstream lender approval very unlikely. However, specialist poor credit lenders assess these cases individually. What they are looking for is evidence that your financial situation has stabilised: a regular income, manageable outgoings, and no very recent adverse credit activity.
If your CCJs and defaults are a few years old and you have not added further negative marks since, your position is likely stronger than it might appear from the raw credit score.
The amount available to you will depend on your income, your outgoings, the age and size of the CCJ, and the lender's own criteria. Lenders who work with poor credit applicants will run an affordability assessment to make sure the repayments are manageable, regardless of your credit history.
AutoMoney Trust lends between £4,000 and £25,000 over terms of 36 to 84 months with no deposit required. Use our car finance calculator to get an idea of what monthly payments might look like at different loan amounts and terms.
Typically yes. Lenders price for risk, and a CCJ, or other forms of adverse credit, signals a higher level of credit risk than a clean file. The interest rate you are offered will reflect that. The more recent or larger the CCJ, the higher the rate is likely to be.
The rate will also be influenced by the loan amount and term. A longer term reduces the monthly payment but increases the total interest paid over the life of the agreement. A shorter term costs more each month but less overall.
For more on how rates are structured, see: Fixed vs variable car finance rates.
A full credit search, also known as a hard search, leaves a mark on your credit file that other lenders can see. Multiple hard searches in a short period can make lenders cautious, as it can look like you are applying for a lot of credit at once.
A soft search does not leave a visible mark and does not affect your credit score. AutoMoney Trust uses a soft search at the initial stage of the application, so checking whether you are likely to be approved will not affect your file.
For more on how car finance affects your credit, see: How car finance can affect your credit score.
There are a few things that can improve your chances of approval and the terms you are offered:
Being turned down by one or more lenders does not mean no lender will approve you. Mainstream lenders and specialist poor credit lenders use very different criteria. If you have been refused elsewhere, our guide on what to do if you have been refused car finance covers the next steps and what your options are.
Car finance can affect your credit score positively or negatively depending on how you manage your agreement. Making regular, on-time payments can help build a positive credit history and demonstrate responsible borrowing, while late or missed payments can negatively affect your credit score and make it more difficult or expensive to access credit in the future.
If payments are not made on time, they may be reported to credit reference agencies, which can lower your credit score and make future borrowing more difficult or potentially more expensive.
When you apply for car finance, a lender may carry out a hard credit search, which appears on your credit file and can cause a small, temporary change to your credit score. This is a normal part of the application process and helps lenders assess whether finance is affordable and suitable for you.
For more information about how applications are assessed, read our guide on Credit Checks for Car Finance.
The main difference between fixed and variable car finance rates is whether the interest rate can change during your agreement. A fixed interest rate means your rate and monthly car finance payments stay the same throughout the finance term, giving you certainty over what you'll pay and making it easier to budget. In comparison, a variable interest rate can rise or fall over time, meaning your monthly payments may change.
AutoMoney Trust offers fixed-rate hire purchase car finance only, so you know exactly what your monthly repayments will be for the full term of your agreement. While fixed rates may sometimes be higher than an introductory variable rate, they provide protection against future interest rate rises and make it easier to plan your finances with confidence.
When comparing car finance options, it's important to consider not only the interest rate but also the APR, total amount payable, and the overall cost of borrowing. For more information read our guide on What Is Car Finance APR?.
The length of your car finance agreement can have a significant impact on both your monthly payments and the total cost of borrowing.
Choosing a longer finance term, such as 60 or 84 months, spreads the cost of the vehicle over a greater number of payments. This can make your monthly payments more affordable, but it may mean you pay more interest overall throughout the agreement.
A shorter car finance term, such as 36 months, usually results in higher monthly payments because the balance is repaid over a shorter period. However, paying the agreement off sooner can reduce the overall amount of interest paid, making it a potentially lower-cost option over the full term.
When choosing the right finance term, it is important to consider your budget, monthly affordability, and how long you plan to keep the vehicle. The best option is one that allows you to comfortably manage your payments without putting unnecessary pressure on your finances.
AutoMoney Trust offers car finance terms from 36 to 84 months, giving you flexibility to choose an agreement that suits your circumstances. Use our car finance calculator to compare different term lengths and understand how your monthly payments and overall costs could change before applying.
Yes, you may be eligible for voluntary termination (VT) of car finance if you've paid at least 50% of the total amount payable under your hire purchase agreement. Under section 99 of the Consumer Credit Act 1974, customers have a legal right to voluntarily terminate your hire purchase agreement, provided the required conditions are met.
Car finance voluntary termination allows you to return the vehicle and end your hire purchase agreement without making the remaining monthly payments. If you've paid less than 50% of the total amount payable, you may still be able to request voluntary termination, but you'll need to pay the difference before the agreement can be ended.
The vehicle must also be returned in reasonable condition, and any outstanding arrears or missed payments will need to be cleared before the agreement can be concluded.
Choosing voluntary termination on a hire purchase agreement may be recorded on your credit file and could be considered by future lenders when assessing applications. Before deciding whether this is the right option for your circumstances, we recommend speaking to AutoMoney Trust. Our team can explain the process, discuss any alternatives and help you understand the potential impact on your finance agreement.
