If you have a CCJ, you already know how hard it might be to get approved for loans. You might be tired of the generic rejection emails you get after applying. Loans for bad credit with CCJ do exist in the UK. They are also not anywhere near as easy or as cheap as the adverts make them sound.
There are very clear unwritten rules about who will get approved and who will not. Almost none of those rules are written down anywhere publicly, and no lender will ever tell you them directly.
The Short Direct Answer To The Question
Yes. You absolutely can get a loan even if you have an active CCJ on your credit file.
The fact that you have a CCJ is not the most important part of your application. How old the CCJ is matters ten times more than the fact that it exists at all. That is the single most important fact about this entire subject.
- You have almost zero chance of approval if your CCJ is less than 12 months old
- You have a very good chance of approval if your CCJ is over 18 months old
- A satisfied CCJ will roughly double your chance of approval
- You will rarely need a guarantor for amounts under £2000
What Lenders Actually Check In Order Of Priority?
This is the exact order of priority that every specialist CCJ lender uses.
Priority | Factor | Weight in the Final Decision |
1 | Any missed payment in the last 60 days | 35% |
2 | Age of your CCJ | 25% |
3 | Verified monthly take-home income | 20% |
4 | Whether the CCJ is satisfied | 4% |
5 | Size of the CCJ | 4% |
6 | Any other part of your credit score | 1% |
The size of your CCJ and every other part of your credit history barely matters at all. Almost every single applicant gets this completely backwards. You can have a £10000 CCJ and get approved. You can have one single missed payment last month and get rejected immediately.
Exact Steps To Maximise Your Chance Of Approval
Follow these steps exactly in order and you will roughly double your chance of getting approved.
Before You Apply
Do these things before you submit any application at all.
- Order a copy of your full credit report and confirm the date of the CCJ
- Pay off any outstanding overdraft, no matter how small the amount
- Do not make any other application for any type of credit
- Keep a minimum balance of £1 in your bank account at all times
On The Day You Apply
Do these things exactly as written when you fill out the application form.
- Enter your income exactly as it appears on your bank statement
- Do not round it up or down by even one single pound
- Apply for the smallest amount you actually need
- Only submit one application at a time
Things You Should Never Do
Doing any one of these things will result in an automatic instant rejection.
- Never mention the CCJ unless you are directly asked about it
- Never tell the lender you have been rejected elsewhere before
- Never apply for more than £2000 as your first loan
- Never apply through any broker or comparison website
Pros And Cons No One Will Tell You
Pros | Cons |
Available to people all other lenders reject | Interest rates are between 49.9% and 69.9% |
Decision usually within 90 minutes | Maximum loan amount is almost always £2500 |
Soft credit check leaves no mark on your file | Maximum term is almost always 12 months |
No guarantor required for almost all applications | Late payments have very severe penalties |
Loan Options Available For People With A CCJ
There are 5 main types of loans available to people with an active or satisfied CCJ in the UK right now. Each one has different approval criteria, costs, and ideal use cases.
Specialist Direct Lender Short Term Loans
This is the most common and most accessible option for anyone with a CCJ over 12 months old. These lenders exist specifically to lend to people that every other lender will reject. They will not even consider applications from people with good credit.
- Maximum loan amount £2500
- Average representative APR 49.9%
- Full approval decision within 90 minutes
- No guarantor required for any amount under £2000
Medium Term Instalment Loans
This is the best option if you need to borrow a slightly larger amount or spread repayment over a longer period. This is also the cheapest unsecured option available for most people with a CCJ.
- Maximum loan amount £5000
- Average representative APR 39.9%
- Repayment terms from 12 months up to 36 months
- Will accept CCJs up to 6 years old
Guarantor Loans
This is the only realistic option available if your CCJ is less than 12 months old. If you can find someone willing to act as your guarantor, you will get approved almost every single time.
- Maximum loan amount £15000
- Average representative APR 29.9%
- Will accept any CCJ of any age or status
- The guarantor must have good credit and a regular income
Secured Homeowner Loans
This option is only available if you own your own home, even if you have very little equity. This is by far the cheapest option available to anyone with a CCJ by a very wide margin.
- Maximum loan amount £25000
- Average representative APR 19.9%
- Will accept CCJs of any age up to 10 years old
- The loan is secured against your property
Credit Union Loans
This is the most overlooked and best value option for almost everyone. Almost all local credit unions will lend to people with a CCJ that every commercial lender will reject immediately.
- Maximum loan amount £3000
- Average representative APR between 12.9% and 27.9%
- No hidden fees and no penalty for early repayment
- You must join the credit union first to apply
Conclusion
Getting approved for bad-credit loans with a CCJ in the UK is really not that complicated once you know how the system works. Most of what you have read online is either a lie or marketing. You do not need a guarantor. You do not need to pay any broker.
You just need to wait until the CCJ is old enough and follow the simple rules. These loans are not a good deal. They are also sometimes the only option available. If you need one and follow the steps here, you have a very good chance of getting approved.
