How Long Does a CCJ Stay on Your Credit Report?
Understand how long a County Court Judgment (CCJ) impacts your credit report, its effects, and how its status can change.
A County Court Judgment (CCJ) represents a formal court order compelling an individual to repay a debt. These judgments are issued when a creditor successfully takes legal action to recover an outstanding amount from a debtor. Once a CCJ is issued, it becomes a matter of public record and is subsequently registered on an individual’s credit file. This registration serves as an important indicator of a person’s financial conduct, influencing how they are perceived by potential lenders and other financial institutions.
Standard Reporting Period
A County Court Judgment remains on an individual’s credit file for a period of six years from the date the judgment was issued. This fixed duration applies universally, irrespective of whether the debt associated with the CCJ is repaid or remains outstanding. The “judgment date” refers to the specific day the court formally issued the order for the debt to be repaid. This six-year timeframe is a standard practice adhered to by credit reference agencies in the UK. After the six-year mark, the CCJ is automatically removed from the credit file, regardless of whether the debt was fully satisfied.
Impact on Credit Information
The presence of a CCJ on a credit file negatively affects an individual’s credit score, often leading to a substantial reduction. Lenders, including those for mortgages, loans, and credit cards, view a CCJ as a clear indicator of financial risk. This perception stems from the fact that a CCJ signifies a failure to meet financial obligations that escalated to court intervention.
An unsatisfied CCJ, meaning the debt has not been paid, presents the greatest negative impact, as it indicates an unresolved financial commitment. While a satisfied CCJ, where the debt has been paid in full, is viewed less negatively, it still remains on the credit file for the full six years and continues to affect creditworthiness. Lenders may still consider a satisfied CCJ as a historical financial difficulty, even though the obligation has been met.
Beyond traditional lending, a CCJ can also impede other financial arrangements, such as securing mobile phone contracts or being approved for rental agreements. The negative entry signals to various service providers a potential risk in extending credit or services. Consequently, individuals with a CCJ may face challenges or receive less favorable terms when seeking such arrangements.
Conditions for Removal or Marking as Satisfied
Specific circumstances can alter the status or lead to the early removal of a CCJ from a credit file. If the full amount of the CCJ is paid within 30 days of the judgment date, the CCJ can be completely removed from the credit file and the public Register of Judgments, Orders and Fines. To achieve this, proof of payment must be provided to the court, and a certificate of cancellation or satisfaction should be obtained. This action effectively removes any trace of the CCJ as if it never existed, preventing it from appearing on credit reports.
If a CCJ is paid after the initial 30-day window, it will remain on the credit file for the full six-year period. However, it will be marked as “satisfied” on the public register and credit file, indicating that the debt has been settled. Lenders view a satisfied CCJ more positively than an unpaid one, though it may still affect the terms of future credit.
In rare instances, a CCJ can be “set aside” by the court, effectively canceling the judgment. This occurs if the CCJ was entered in error, or if the individual was unaware of the original claim. Applying to have a CCJ set aside requires contacting the issuing court, completing specific forms, and paying a court fee. If the court grants the application to set aside, the CCJ is removed from the credit file as if it was never issued.