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Loans for CCJ & Bad Credit: Where & How Can You Get One?

Written by, Marija Petkova

Updated November, 10, 2022

Many people believe that a County Court Judgement (CCJ) on your credit file can be a serious impediment to getting approved for a loan. 

However, there are several direct lenders in the UK willing to provide customers with loans for CCJ or bad credit. 

Continue reading to see which one can best meet your needs and financial situation.

CCJ Loans UK: Which Direct Lenders Offer Them?

  • £300 to £1500 loans
  • 100% transparent fees
  • Same-day cash transfer
  • No early repayment fees

  • Borrow £100-£30,000 (or higher)
  • 2.8% Representative APR
  • No guarantor loans 
  • Long-term loans (up to 30 years)

  • Borrow from £1,000 to £250,000
  • Secured & unsecured loans 
  • Over 1 million customers  
  • No impact on credit rating

  • Borrow £1,000-£8,000
  • Loyalty benefits 
  • Award-winning lender 
  • No upfront fees

  • Loans from £1,000 to £1,000,000
  • Partners with 100+ direct lenders
  • Low representative APR (from 2.7%)
  • No-fee application

  • Small loans (up to £800)
  • Flexible repayment terms
  • £10 referral bonus
  • No hidden fees

*Before you apply for a CCJ loan, consider whether you really need it and whether you can afford to repay it. Loans with a CCJ tend to cost more than regular products, so you need to decide carefully. 

What Are CCJ Loans?

A County Court Judgement (CCJ) is a court order given to individuals who have failed to repay what they owe to another person or company. It has a negative effect on your credit score as it labels you a bad debtor. 

A CCJ can stay on a person’s credit file for 6 years—even after being satisfied—and shows up in a credit check making it difficult to get approved for financial products such as credit cards, loans and mortgages. In fact, most lenders consider loans for CCJs and bad credit to be too risky and tend to reject those applicants. 

What happens if you ignore a CCJ? Find out in this helpful article

Can I Get a Loan With A CCJ?

It is tricky but possible.

While most high-street banks and lenders will not accept an applicant with a CCJ, direct lenders are more open to working with borrowers with an IVA, bad credit, or a CCJ.

This is because most direct lenders tend to look at overall affordability and consider factors such as a stable income, employment status, security and guarantors when deciding on whether or not to accept applications for bad credit and CCJ loans. 

Who Is Eligible for a CCJ Loan?

Even though eligibility criteria vary from one lender to the next, as a general rule of thumb, these are the following requirements one has to meet to request a CCJ bad credit loan:

  • Be 18 years of age or older
  • Be a UK-based resident
  • Be employed (full time or part-time)
  • Have a UK mobile number and email address
  • Show that you are able to afford monthly repayments
  • Have a valid bank account and debit card

As mentioned, lenders have different criteria. For instance, QuidMarket only works with borrowers between the ages of 23 and 65 who make at least £1,300 a month. Others, like Bamboo loans, will not service borrowers who are bankrupt. 

What Type of Loan Can You Get With a CCJ and Bad Credit?

Since CCJs have a negative impact on your credit score, most traditional personal loans will be unavailable to you. 

Here are the most commonly offered types of loans for people with a CCJ:

1. Logbook loans

This is when you use your car as security against the loan. Logbook loans can be a good idea if your vehicle is finance-free, however, if you fail to keep up with payments, the lender can repossess your car. 

Not all lenders require security against a CCJ loan. Ocean Finance, for example, offers both a  CCJ unsecured loan and a secured one. 

2. Payday loans

These are short-term loans that are usually repaid in one lump sum, typically on the day you receive your salary.

If you are looking for the best payday loans in the UK, we have the complete list for you.

3. Guarantor loans 

As the name implies, these are loans where you need a guarantor (someone with a good credit history) to cover the loan repayments if you’re unable to. 

Can I Get a CCJ Loan With No Guarantor?

Yes, several lenders offer no guarantor loans for people with CCJLending Expert and Proper Finance provide loans for CCJ without the need for a guarantor, while Quidmarket has no guarantor loans for a CCJ and bad credit

Note: The type of CCJ loan you will be offered depends on your financial circumstances and borrowing needs.

How to Get CCJ Loans in the UK?

Applying for CCJ bad credit loans is no different from requesting other types of loans. Most lenders have streamlined the process by enabling you to apply online from the comfort of your own home. 

Here is what you need to do.

1. Find a lender

You can try and find a direct lender online by doing a simple search or opt for a credit broker like THL Direct that will match you to suitable providers. Either way, make sure that the lender you choose is legit and authorised by the FCA

2. Provide personal information  

To start the application process, you need to fill out an online form with information about yourself, your income and expenditures, as well as your banking details.  

3. Your application will be reviewed

Some direct lenders may run a traditional credit check, but most will use the Open Banking system to assess your creditworthiness and understand your current financial situation. The credit check will also determine how high your interest rate will be. 

You might receive a call from the credit company to answer and confirm some follow-up questions.

Note: Loans for bad credit and a CCJ tend to come with higher fees and charges than traditional loans since bad credit borrowers pose more of a risk to the lender. 

4. A decision is reached 

Usually, it takes 24 hours for a loan provider to reach a decision regarding your application. However, since most applications are processed online, some lenders, like Proper Finance, might provide you with a decision on your CCJ loan in under two hours.

5. Sign a contract

If approved, you need to carefully review the terms and conditions outlined in your loan agreement. You should only sign the agreement if you are satisfied with the rates and terms. Once that is done, the money will be transferred to your bank account, usually within the same day. 

Note: Depending on your personal circumstances, you may be required to provide additional documents, such as proof of ID and address, tax returns or payslips. 

Final Thoughts

Most lenders consider a CCJ on a credit file to be a deal breaker when approving a loan, however, there are providers who offer CCJ bad credit loans to all types of borrowers.

That said, the best course of action is to avoid getting a County Court Judgement or to remove them as CCJ loans are costlier than traditional loans. Pay your bills on time and try to settle debts as soon as possible—this way you will boost your credit rating and become eligible for loans with more competitive interest rates.

Frequently Asked Questions And Their Answers

How do repayments work with bad credit and CCJ loans?

As with payday and bad credit loans, CCJ loan providers offer flexible repayment terms, so you can choose one that works best for you. Funds are usually withdrawn automatically from your account using a Continuous Payment Authority (CPA). 

Can I get a credit card with a CCJ?

Traditional credit card companies are not likely to offer products to people with a CCJ. However, there are lenders who offer credit cards to unemployed and bad credit borrowers, giving everyone a chance to get a credit builder card. 

Do doorstep loan companies offer loans for CCJ or bad credit?

It depends on the lender, but in general, doorstep loan companies, i.e. companies that collect payments by coming to your home, are ready to accommodate people who can’t get financing elsewhere.

My name is Marija, and I'm a financial writer at DontDisappointMe. Although finance might not be everyone's cup of tea, my 10+ years of working in one of the biggest banks in my country, and my interest in extensive research on everything finance/investment-related, have made me somewhat of an expert in the field (if I do say so myself). No longer having the passion to work in a corporate setting, I decided that I couldn't let all of this knowledge go to waste so I started writing. And, here I am! Today I try to share my knowledge with my audience in the hopes of making this topic as simple and interesting as possible. In my leisure time, I like spending time with my family and travelling to new locations.