The Absent Minded

A county court claim is a claim for money through the legal system, in which one party is able to force a judgment on another through a trial administered by a judge. These claims can be disputed, but if handled incorrectly, can have adverse effects on one’s credit rating.

Your credit report won’t be harmed by putting up a dispute on the county court claim. The only way your credit report will take a hit is by failing to pay in the event a judge declares the claim to be upheld. Feel free to debate the charge and present your case. Best case scenario is that you win the case and don’t have to pay anything at all- while otherwise you should start making immediate plans to pay the debts.

Once presented with an unfavorable outcome, you still won’t have to worry about creditors catching wind of it. You will only have to worry about your credit if you miss a payment plan as outlined by the judge residing over the case. If you do miss a payment, despite paying it later, the county court judgment will go down on your credit report for no less than six years.

Some don’t view the CCJ as a serious matter. In actuality, the CCJ is on terms with a bankruptcy when regarding your reputation and credit report. Like a bankruptcy, it is not a short-term blemish. It will remain on your credit history for six years, and may not be removed until that date, no matter how much you plead and beg to creditors.

It is not the end of the world if you do manage to get a CCJ tied against you. In fact, there are lenders that specialize in CCJ mortgages that you can take your case to for review. If you have an otherwise great history of being up to date on finances, you shouldn’t have a problem securing a mortgage. CCJ mortgages aren’t offered at the best rates, but that’s something you will have to accept until the CCJ is expunged from your history.

If you had bad credit before you were hit with the country court judgment, you can expect much greater difficulty in getting a mortgage. Bad credit CCJ mortgages do exist, but they will require a hefty deposit and won’t feature the most agreeable terms. Like any lender, there are multiple bad credit CCJ lenders to size up and ultimately decide to do mortgage business with.

Closing Comments

CCJ mortgages aren’t as valued as generalized mortgage loans, so do your best to keep a county court judgment from befalling your name. If it does happen to tarnish your credit, do your best to work towards a better credit until the six year penalty is up.

Learn more about Mortgage With CCJs and CCJs Remortgage.

This entry was posted on Friday, January 15th, 2010 at 5:05 pm and is filed under Finance, Home And Family, Reference And Education. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.