How a Satisfied CCJ Affects Your Credit Score for the Future

I’ve spoken with several people who have cleared their CCJ debt recently, and one of the big questions they asked me was if I knew how their satisfied CCJ would affect their credit score. 

It also appears a common question on online forums, just like this:

Source: https://forums.moneysavingexpert.com/discussion/comment/36125377#Comment_36125377 

So, how does a satisfied CCJ affect your credit score?

What is a County Court Judgment (CCJ)?

A County Court Judgment is a type of court order in England and Wales. They’re predominantly issued against individuals who are judged to owe another party compensation or a debt. 

For example, if you owe your electric company arrears and they decide to take you to court to make you pay, the judge will issue a court order for you to pay. This court order is a County Court Judgment. 

Before court action the claimant must follow certain steps, and they might chase you using a debt collection business first, such as Lowell Debt Collection. 

During litigation, a judge will consider your circumstances and explain how you must pay. You might be told to pay the whole debt at once or pay over many instalments. If you don’t follow the court order, the claimant can then ask to use debt enforcement action, such as bailiffs or have money taken from your wages. 

Do you have to pay?

There are ways to have debt written off in the UK.

If you genuinely can’t afford your debt repayments then looking into whether you could have your payments lowered or written off might be just what you need. 

If you want to find out whether you qualify for having debt written off or payments lowered then fill out the short form below.

Is a satisfied CCJ classed as outstanding?

A satisfied CCJ is when the debt has been fully repaid, as per the judge’s order. 

A CCJ can only be satisfied or unsatisfied. There is no current reporting for partially repaid CCJs mid-way through the repayment period. 

However, you can avoid having the CCJ recorded completely if you pay the debt in full within one calendar month of the CCJ being issued by the court. 

What happens when a CCJ is satisfied?

Once a CCJ has been satisfied you no longer have to make any debt repayments regarding the specific CCJ debt. You’ll still need to pay your other debts. 

Can you lower your repayments?

If you’re struggling to pay back your debt, then you might qualify for a debt solution.

Some solutions lower your monthly payments while others write off a portion of your debt. 

To find out whether they could work in your situation, hit the button below.

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How much does a CCJ affect your credit score?

It depends on the credit reference agency, but a CCJ on its own will lose you around 250 points. This doesn’t include the points you will have dropped by the defaults that led to the CCJ in the first place. 

Will a satisfied CCJ affect a credit score?

A satisfied CCJ shows prospective lenders that you’ve repaid debt in full. It will positively affect your credit score. 

The CCJ will become marked as satisfied on the Register for Judgments, Orders and Fines. It will also show as satisfied on your credit report. 

How does a satisfied CCJ affect your credit score?

A satisfied CCJ will improve your credit rating over time. But it can still be difficult to get approved for credit if it’s still visible on the credit report, especially if the CCJ and CCJ satisfaction were only added recently. 

The fact that you had to be taken to court to repay a debt will put some lenders off giving you credit. However, the length of time that has passed since the CCJ – as well as the length of time the CCJ has been satisfied – will impact lender decisions. If you want to credit with more favourable repayment terms, it’s best to wait as long as possible. 

The good news is there are still plenty of lenders out there that will lend to people with a satisfied CCJ. There are even bad credit lenders who will sometimes lend to people with an unsatisfied CCJ. 

In summary, a CCJ decreases your credit rating faster than your credit rating increases when the CCJ is satisfied. 

How do I remove a satisfied CCJ from my credit report?

You cannot remove a satisfied CCJ from your credit report. The CCJ will remain marked as satisfied until it is automatically deleted from the report. 

At this point, you’ll have an even better chance of getting approved for further credit going forward as lenders won’t even know about the CCJ. 

The only way to get a CCJ removed from your report any earlier would be to pay off the debt in full within one month of being issued the CCJ. 

How long does a satisfied CCJ stay on your record?

All CCJs remain on your credit report for six years from the date the CCJ is issued. This is irrespective of whether the CCJ has been satisfied.

For example, if you satisfy the full repayment of the CCJ debt within one year, it will still stay on your credit file for six years. 

“It will only get worse” 😩

It’s cliché to say, but with debt it’s true; the longer you leave it, the worse the problem gets. 

There are straightforward and effective ways to deal with debt, but you have to know your options. 

Fill out the short form to find out about the debt solutions that could reduce your monthly payments or even write off some of your debt.

Get Started

Avoid further CCJs with debt support

If you need additional help dealing with a CCJ or the threat of court action due to a debt, it’s best to get personalised advice from StepChange or a similar debt charity. You can also learn ways to get out of debt and possibly write off debt on my Debt Help page.