Am I eligible for car finance if I have a CCJ?

Credit Advice

Yes, you can still be eligible for car finance if you have a CCJ, but your options may be more limited.

Am I eligible for car finance if I have a CCJ (County Court Judgment)?

Yes, you can still be eligible for car finance if you have a CCJ, but your options may be more limited. A County Court Judgment is a legal decision against you for failing to repay a debt, and it remains on your credit report for six years. Many mainstream lenders view CCJs as a red flag, indicating higher financial risk.

However, there are specialist lenders in the UK who cater to individuals with adverse credit histories, including those with CCJs. These lenders focus on your current affordability and financial stability rather than solely relying on your credit score. They may request proof of regular income, such as payslips or bank statements, and assess your ability to meet monthly payments.

To improve your chances of approval, it helps if the CCJ is satisfied, meaning you have repaid the debt in full. A satisfied CCJ demonstrates to lenders that you have taken steps to resolve your financial difficulties. You can request a “Certificate of Satisfaction” from the court to show lenders proof of repayment.

Other ways to increase your eligibility include:

  • Providing a larger deposit to reduce the loan amount and lender risk.

  • Opting for a cheaper car to keep monthly payments affordable.

  • Applying with a guarantor who has a strong credit history.

While interest rates may be higher due to the presence of a CCJ, making consistent repayments on a car finance agreement can help rebuild your credit score over time. In summary, having a CCJ doesn’t prevent you from getting car finance, but you may need to work with a specialist lender and take additional steps to secure approval.

 

Related Questions

What proof of income do I need to provide for car finance?

Most lenders will require you to provide proof of income, usually from a recent payslip or bank statement. If you are self-employed they may also ask for a tax return.

What are the basic eligibility criteria for car finance in the UK?

Most lenders will consider someone eligible if they're over 18 years old, a UK resident with 3 years address history and 12 months employment history. They must usually hold a full UK driving licence.

Is there a minimum income requirement for car finance?

Yes, most lenders impose a minimum income requirement for car finance to ensure applicants can afford the monthly repayments, usually between £1000 to £1500 per month after tax.