Dealing With Credit Ratings And County Court Claims
Much like a bankruptcy, a county court claim doesn’t look so grand on a credit rating. A country court claim is a simple order to appear before a judge to discuss the possibility of owing another party money. If ignored or treated without care, these claims could make a dent in your credit score.
Disputing a claim is still perfectly fine if you wish to contest the amount owed, or that you owe anything at all. A judge will determine which party is the most correct and pass a judgment. The judgment that comes about will be a legal judgment and it must be obeyed. However, the judge must formulate a payment plan if it is seen you do not have the funds on hand.
The county court judgment is a serious matter. If you miss a payment, the county court judgment will be placed on your credit rating. This only occurs if you are behind on payments- so do your best to maintain payments if you are having problems paying bills. The judgment lasts for a solid six years- even if you do end up paying the total off at a later date.
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.
A bankruptcy doesn’t necessarily disallow a mortgage loan, and neither does the county court judgment. It just means that you will have to work harder in order to prove yourself over the next year or so. Often if you have an otherwise perfect credit history, a lender will overlook the CCJ on file and put faith in you as an individual. Of course, this demands that you have had a long line of credit and have maintained it without error.
Having bad credit and obtaining a CCJ mortgage is another story entirely. Bad credit CCJ loans are a niche mortgage that are harder to qualify for. The best thing to do at this point is to improve credit or consult lenders that specialize in bad credit mortgages. Even two years is enough time to raise your credit if you can pay off credit balances monthly and on time.
Closing Comments
Don’t linger on the county court judgment if you have been served with one. Don’t try to contest it any further or refuse to pay, since it will indeed have an impact on your ability to get a loan or even a job in some cases. Pay up and move on- it’s the most you can do.
Learn more on CCJ Mortgage Deals and CCJ Mortgage.
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