How will a CCJ affect my credit rating?

A CCJ stays in your credit report for about 6 years, and it affects your score the whole time it’s there. After the 6-year period, then it’s dropped even if you’ve not paid your dues in full. However, you could pay off the money you owe under judgement before that period and then apply for a certificate of satisfaction. This will make things a bit easier for you but the very presence of a CCJ would make it harder to get credit.

What can I do if I can’t immediately pay my creditors and I receive a source of income?

If you can’t immediately pay your creditors in full, then you’ll have to watch your income. As you weight your options and plan out your strategies, you should move your income to an account that isn’t connected to any of your debts. Remember, some banks are connected so do your research and ensure that your account isn’t in any way linked to them in any way.

Will I be able to open a new bank account if I have got debts?

Definitely, having debts shouldn’t stop you from getting an account. Most banks offer a ‘basic bank account’ where the credit score of the individual is not a determining factor. So you could still get one even if you’ve got CCJs or debts. However, such a bank account is a bit limited in functionality. You won’t be in a position to take any overdrafts of get a cheque book.

Can I get a logbook loan when self-employed?

Absolutely, you could get the loan so long as you prove your affordability. In fact, most of our customers are self-employed.

How can I improve my credit rating?

For starters, ensure that you’re on the electoral register; this brings your credit file up to date. Remember, every instance you apply for credit is recorded on your file so you need to refrain from making too many applications within short time frames.

Also consider getting copies of your credit report frequently. This will place you in a better position to identify any errors. Contact your credit reference agency to get rid of them.

Should I close lines of credit I’m not using?

This is not a good idea though it may help you reduce your spending. Also don’t request for lower credit limits as the score only takes into account the gap between your credit limit and debt. It can’t really differentiate between a requested and a forced limit reduction. Remember, a larger gap between your limit and balance implies a more responsible person.

Can you help me if I’m interested in a debt-management plan?

Yeah sure. If you’re looking to pay up your credit cards and loans, then a debt management plan is the best way forward. We could send a representative to negotiate reduced payments on your behalf.