How long does a CCJ remain on your credit file?

What is a County Court Judgment (CCJ)?

A County Court Judgment (CCJ) is a court order in England, Wales and Northern Ireland requiring you to repay a debt you owe.

If you fail to pay a debt, such as a credit card or a personal loan, or even your rent, the lender or landlord may apply for a CCJ.

The court will look at the evidence and if it agrees you owe the money, it will issue a judgment against you.

The CCJ will be sent in a letter and you will be given a list of options of actions to take. These will include:

• Paying back the money you owe in a lump sum
• Making the payment in instalments
• Disputing the claim if you think it has been given to you in error

In Scotland, a Money judgment is called a ‘decree’ and works slightly differently.

How long does a CCJ typically stay on your credit report?

If you pay off the entire amount owed within a month, the CCJ will not be recorded. If you do not pay the amount in full within a month, a CCJ will stay on your credit record for six years.

The CCJ will be on your file for the full six years whether you subsequently pay off the debt in full or fail to clear the debt. Either way it will be removed after six years.

Can a CCJ be removed before the end of its term?

You can only get a CCJ removed from your credit record for the following reasons:

• The money owed was paid off in full within one month of the CCJ being issued to you
• Six years have passed since the CCJ was first sent
• The CCJ was cancelled by the courts, after you disputed it
• You can prove an insurance company was responsible for the debt

You would need to ask the three main credit reference agencies in the UK – Experian, TransUnion and Equifax  to remove the CCJ from your report if they have not already done so.

Implications of a CCJ

The implications of a CCJ are far-reaching. When a CCJ is issued, it is noted on a public record called the Register of Judgments, Orders and Fines, meaning everyone can see it, including your landlord and your boss at work.

Credit rating impact

Credit reference agencies put CCJs on your credit record and any lender who checks your credit rating in the future will see it.

Having a CCJ on your record will lower your credit score because lenders may think you won’t be able to pay them back. The CCJ will reduce your credit score for six years.

Restriction of financial options

Lenders, landlords and even employers look at your credit record to see your creditworthiness. They do this to see how risky you are and to calculate the chances of you paying any money you owe.

With a CCJ on your file, you will have fewer borrowing options and may have to pay higher interest rates for credit than someone with a good credit score. This may also affect your ability to rent or buy a new home..

What happens if you ignore a CCJ?

The consequences of ignoring a CCJ are serious and the following could happen:

• An attachment of earnings, where some money is automatically taken from your wages to pay off the debt
• High Court Enforcement Officers or bailiffs may be sent to your home to take other assets that can be used to pay off the debt owed

Neither of these are circumstances anyone wants to go through.

That’s why it’s important to act as soon as you receive the CCJ, and to agree to pay back the debt in instalments.

There are also lots of free, independent debt charities, such as Stepchange or MoneyHelper, that can help with advice and debt management plans.

Settling and removing a CCJ

Paying the CCJ in full within a month

When you are first notified of the CCJ, if you are able to, try to pay the debt in full within within one month of issue. This will stop it being reported on your credit file .

Even if you are disputing the debt, it may be worth settling within the first month to avoid the CCJ going on your credit file.

Can a CCJ be removed before the end of its term?

A correctly issued CCJ, not cleared within the first month, cannot be removed from your record early.

Applying for a 'set aside'

You may be able to successfully dispute a CCJ – particularly a ‘default judgment’ where you were not present – and ask the court to set it aside. It can then be removed from your credit record. There are companies that claim they can help get CCJs set aside.

Waiting for the CCJ to be automatically removed

If you wait six years, a CCJ will be removed from your record, whether or not you have cleared the debt.

h2>Options for dealing with a CCJ

Can I negotiate a CCJ?

You can negotiate a CCJ if you think it has been issued as a mistake or if you can pay the remaining debt in full.

When the CCJ is sent to you, you will receive a letter of claim explaining your options. If you are planning to dispute the CCJ or if you are able to make a payment to clear the debt, you will need to complete the reply form and send it back to the creditor within 30 days of the date it was sent.

Keep up with other credit repayments

With a CCJ damaging your credit score, it is vital you keep up with your other credit repayments. Falling behind or failing to pay will make your credit score even worse, which could restrict your ability to borrow, rent a home or even get a job.

Avoid getting any more CCJs

It is essential that you avoid getting any more CCJs. Be careful to borrow within your means and pay back everything you owe on time.

Consider using a credit builder credit card

To help rebuild your credit score, you may be able to use a credit builder credit card. These have been designed to help people with a poor credit rating use small amounts of borrowing to show they can borrow responsibility and pay back debts on time.

Summary - How long do CCJs remain on your credit file?

Once a CCJ is registered – if you don’t clear the debt within one month – it will stay on your credit file for six years. After that CCJs will be automatically removed, whether or not you have paid off the debt. CCJs have a negative effect on your credit score and may restrict your ability to borrow, rent or get the job you want.