From CCJ to Secured Loan

If you've landed on our site and you're not sure about terms of reference such as CCJs, credit checks, or credit history - then this Jargon Buster is designed to help you understand the language of our Logbook Loans!

CCJ

CCJ stands for County Court Judgment. A CCJ is issued when a creditor wins a County Court Claim saying you owe them money. The CCJ is issued to indicate that you must repay the debt - either for the amount agreed by you and the creditor or, if you can't agree, a payment set by the court.

CCJ records

You must pay the full amount of your CCJ within one month otherwise your CCJ will be recorded on the Register of County Court Judgements for six years. This impacts on your credit report since organisations such as banks, building societies and loan companies use the registered information that appears on your report when deciding whether to give you credit or loans, including a mortgage.

Credit checks

Credit checks are performed by banks, building societies, loan companies and credit card companies to decide if you are a good or bad credit risk. These searches are carried out by credit reference agencies such as Experian or Equifax If you have a CCJ, are in arrears or have defaulted on payments, they may decide to refuse a loan. However, there is no credit check performed by us for our Logbook Loans because your loan is secured on the value of your car and based on your ability to repay.

Credit history

If you have CCJs, defaults or arrears - these will make up your credit history. In other words, your credit history gives loan companies an idea of how well you manage your finances when it comes to making loan or credit repayments. A bad credit history may mean you are turned down for loans because you appear to be a bad credit risk.

People who have never applied for loans or credit before are said to have 'no credit history'. They may also be turned down for loans or credit because it is impossible for financial companies to judge whether they will be a good or bad credit risk.

For our Logbook Loans we do not ask to see your credit history. That's why our no credit check loans are ideal for those who have CCJs, defaults, arrears or no credit history.

Secured loan

Because our Logbook Loans offer you a secured loan we can afford to overlook CCJs, arrears or defaults. A secured loan is one that uses an asset as security for the loan. In the case of a Logbook Loan your car is used as security against the amount you borrow and your loan is calculated on what you can afford to pay back. Your credit rating just doesn't come in to it.