Does A Soft Credit Check Show A CCJ?

Does a soft credit check show a CCJ? The simple answer is yes.

Once you’ve applied for car finance, the lender will do a few initial background checks to make sure that you’re eligible. One of the places they look is your credit file – a financial record containing a range of information. This will include any credit challenges, such as a County Court Judgement (CCJ).

We recognise that this may prevent you from applying. But don’t panic.

At We Finance Any Car, our panel of lenders has experience with bad credit applicants, including those who have been previously unable to repay debts. So, just because you’ve struggled with finances in the past, it doesn’t mean you can’t secure flexible car finance with a CCJ now.

Each application is reviewed carefully and on an individual basis, increasing your chances of approval. Visit our specialist bad credit solutions to discover more.

Or, check if you’re eligible by applying today.

Does a soft credit check show a CCJ on your file?

In short, a soft credit check will show the lender anything that you can see yourself. This includes whether you’ve received a CCJ due to unpaid debt.

Overall, a soft search is a lot less invasive than a hard credit check, won’t harm your credit score, and only gives an overview of your financial history.

What does a soft search show?

Below is a list of information available to lenders:

Personal details, including your name and date of birth
Current or closed bank accounts and credit card accounts
Credit history, including any late or missed payments
Any loans or outstanding debt
Details about anyone you have financial links with, such as a spouse
Public records of information within the past six years, including CCJS, IVAs or bankruptcies

Although more of a snapshot, a soft search still needs to provide a decent amount of information about your creditworthiness. Otherwise, it’s not of any use to the lender.

Remember, your credit report is not always the deciding factor. Our lenders will review a variety of details to help determine whether you’re the right fit – ranging from your income to your employment history.

A CCJ will likely limit your options, but it’s still possible to finance a car. You’ll just have to go through a specialist…

Any questions? Get in touch with our friendly team today.

How long do CCJs stay on your credit file?

Frustratingly, a CCJ can remain on your credit file for up to six years – even if you’ve already paid it off. Lenders may view this as a sign of credit risk and it can negatively affect your ability to apply for credit.

Even if you don’t fail the credit check, it may lead to higher interest rates and therefore higher monthly payments. If you’re looking for an affordable way to buy a car – this can feel like a real setback.

For this reason, you may be tempted to opt for a lender that doesn’t need to review your credit file. Pause! No credit check car finance solutions will put you at risk and are not a viable option.

Luckily, it’s not all bad news!

Although CCJs do show on a soft credit check, the impact on your report should lessen over time – as long as you’re paying it off in regular instalments. For lenders, this commitment to responsibly managing your finances is a positive sign. It will also help to rebuild your credit score.

How a CCJ impacts your credit score

Alongside bankruptcy, a CCJ can be extremely damaging. On average, a CCJ could lower your credit score by around 200 to 250 points. The extent of this damage will depend on your financial stability and credit profile. For example, it could take your score from a good range to a poor range.

This will only be the case if it has been recorded on the public register and added to your file. If you were able to pay off the CCJ within a month of receiving it, it won’t be recorded.

While there is no specific credit score to apply for finance, it may make lenders hesitant to accept your application.

What is a satisfied CCJ?

If you have fully repaid the debt you owe, the status of your CCJ will be updated to ‘satisfied’. Lenders will be able to view this on your file and it may improve your ability to secure a finance agreement.

A few things to be aware of:

You will need to provide evidence, such as a bank statement
You can also apply for a Certification of Satisfaction
A satisfied CCJ can improve your score by a few hundred points
The improvement to your score won’t be immediate

It’s important to understand that your credit score is influenced by a range of factors. While a satisfied CCJ can help to get you back on track, it won’t necessarily take your score from poor to perfect.

Discover stress-free car finance solutions

In many cases, even the thought of a credit check can stand in the way of financing a car. It’s nerve-wracking and can add stress to the experience, especially if you have concerns about your credit history.

At We Finance Any Car, we’re here to support you.

Why choose us:

Expertise in all areas of car finance, including bad credit
No initial impact on your credit score
Quick and easy application
Access to a wide range of cars for sale, new and used
Competitive APRs
Large panel of specialist lenders

Why we use a soft credit check

It’s crucial to do a credit check, but it doesn’t have to be so daunting. That’s why our lenders opt for a softer option – a soft credit check.

This type of check helps to verify your identity and gives access to the relevant information needed to review your application. The difference? It doesn’t leave a mark on your report.

How does this benefit you?