Will a CCJ affect my credit rating?

Q After finishing my degree I left my student house, closed my student bank account and moved on. I did not inform the student loans company, but it has now found me at my new address and I have set up a standing order to repay the loan.

However, in 2000 the student loans company issued a county court judgement (CCJ) against me at my student address. It was only when a bailiff went to that address that the company realised I had moved.

Has the CCJ been issued against me for real, even though I was not at the address? If so will there be a 'black mark' against me? Will my credit rating now be very poor?

KS

A I'm afraid the simple answers are yes, yes and yes.

The fact that you had moved on doesn't change the validity of the CCJ issued against you, and nor does the fact that you have now begun to repay the debt invalidate the judgement.

CCJs remain on your credit file for six years, even if you repay the debt during that time, though in that case a note indicating the repayment will be added to the file. This means that whenever you apply for credit, any lender checking your credit file will be able to see that you defaulted on your student loan. And although the entire credit industry insists that credit blacklisting doesn't exist, lenders are less likely to give you credit - whether in the form of a credit card, personal loan or mortgage - if they feel there is any chance you might not repay what you owe. So it is likely that you will have difficulties getting credit over the next four years.

Your case highlights the main point to remember about any debt: never ignore it. Your credit rating could suffer as a result.