Can I get car finance with a CCJ or defaults?

If you’ve had financial difficulties in the past, such as a County Court Judgment (CCJ) or default, you might be wondering where you stand when it comes to car finance. The truth is, while these marks can make things trickier, they don’t necessarily rule you out. Many people in the UK secure car finance with a CCJ or defaults each year - and there are lenders who specialise in helping those with complex credit histories.

In this guide, we’ll explain what CCJs and defaults mean, how they affect your credit, and what your options are when applying for CCJ car finance or a car loan with a CCJ or default.

What is a County Court Judgment (CCJ)?

A County Court Judgment (CCJ) is a legal decision issued by a court when you fail to repay money you owe. It’s often the result of an unpaid debt - for example, from a loan, credit card, or utility bill - where the lender has taken legal action to recover the money.

If a CCJ is issued against you, it will be recorded on your credit file and can have a significant impact on your ability to get credit - including things like car finance.

What does it mean to have a default on your credit file?

A default is different from a CCJ, but it still indicates financial concern. It happens when you’ve missed several payments on a credit agreement (usually 3 to 6 months in a row). Your lender may then close your account and mark it as defaulted.

This information is recorded on your credit report, and like a CCJ, it can make lenders more cautious about approving new credit agreements.

How does a CCJ affect you?

Having a CCJ on your file can:

• Lower your credit score significantly
• Make it harder to get credit or finance
• Lead to higher interest rates or less favourable terms

However, lenders who offer car finance with CCJs tend to take a broader view. They’ll consider how long ago the CCJ was issued, whether it’s been paid, and what your current financial situation looks like.

Can I still get car finance if I have a CCJ?

Yes, it is possible. Although a CCJ will be taken into account, there are lenders who provide CCJ car finance by looking at your application on an individual basis.

You may improve your chances by:

• Providing proof of a steady income
• Paying a deposit to reduce the amount you need to borrow
• Applying with a joint applicant or guarantor
• Showing that the CCJ has been satisfied (i.e. paid off)

Can I get car finance if I’ve had defaults?

Yes - defaults don’t automatically disqualify you from getting car finance. Specialist lenders in car finance for bad credit will look at when the default happened, how much it was for, and whether your financial situation has improved since then.

Being upfront about your credit history and choosing a lender experienced with defaults can really help.

I’ve got bad credit and a CCJ - is car finance still possible?

Absolutely. While it's true that a low credit score, defaults, and CCJs can make getting approved more difficult, car finance with a CCJ is still achievable – particularly if you work with a specialist provider who understands these circumstances.

These lenders often focus more on:

• Your current affordability
• Your employment status
• Whether you can offer a deposit
• If the CCJ has been satisfied

In short, it’s not just about your past – it’s about your present too.

How long does a CCJ stay on my credit file?

A CCJ remains on your credit file for six years from the date it was issued. After this time, it’s removed automatically, even if you haven’t paid it off. If you do pay off the CCJ in full within one month of it being issued, you can apply to have it removed sooner.

During the time it’s on your file, it can affect your ability to access mainstream credit - but that doesn’t mean all doors are closed.

Will a default make it harder to get car finance?

Yes, a default can reduce your credit score and make lenders more cautious - but it doesn’t make it impossible. The more time that’s passed since the default, and the more stable your financial situation is now, the better your chances of approval.

Can I still get car finance if I have a default?

Yes - there are lenders who specialise in offering car finance for bad credit, including applicants with defaults. You may need to provide some extra documentation, such as proof of income, and you might be offered a higher interest rate, but finance is still available.

How long will a default show on my credit file?

Like a CCJ, a default stays on your credit report for six years from the date it was recorded. After that, it is automatically removed - regardless of whether it’s been paid off or not.

Do I have to clear my default to get car finance?

Not necessarily. While some lenders may prefer it, others are willing to work with applicants who still have unpaid defaults, especially if the default is older or for a small amount.

Paying off your default (or showing that you're repaying it via a payment plan) can help strengthen your application, but it’s not always a requirement.

What about if I’ve been bankrupt?

If you’ve been declared bankrupt in the past, you might be wondering if car finance is even an option. While being bankrupt can seriously affect your creditworthiness, there are car finance for bankrupts UK options out there.

Here’s what to bear in mind:

• You generally can’t get new credit over £500 during bankruptcy without informing the lender
• Once your bankruptcy is discharged (usually after 12 months), you can begin rebuilding your credit
• Some specialist lenders may consider you once your bankruptcy is discharged - particularly if you’ve started to show financial stability

If you're looking for a bankrupt car loan, your best option is likely to be a non-mainstream lender who understands how bankruptcy affects credit, and is open to individual assessments.

Having a CCJ or default on your credit file can feel discouraging - but it doesn’t mean you can’t get car finance. Whether you’re dealing with one missed payment or a more serious financial setback, options do exist. You could even try a free calculator tool to see how much you might be able to borrow without affecting your credit score.