How much will your business credit score improve after a CCJ is removed?

If your company has had a County Court Judgment (CCJ) in the past, you’ll know how much it can affect your access to finance, supplier terms, and even business partnerships. So when that mark finally disappears from your report, you might wonder what happens to your credit score and will it increase? This guide explains how CCJs and defaults affect your business credit, what happens when they’re removed, and some steps to rebuild your score.

What is a CCJ and how does it affect a business credit score?

A CCJ is a court order issued when your business fails to repay a debt. It usually follows missed payments to a lender, supplier, or service provider. Once issued, a CCJ appears on your business credit report and signals to others that your company has previously failed to meet payment terms. As a result:

• It can significantly reduce your business credit score

• Lenders may view your business as high risk

• Access to credit or finance may be restricted

• If you do get approved, you may face higher interest rates

A CCJ stays on your credit report for six years from the date it was issued, unless you pay the full amount within one month, in which case it can be removed entirely.

How many points does a CCJ affect your credit score?

There’s no exact number for how many points a CCJ will reduce your score by because every business’ credit score is unique to them. The scale of the impact depends on:

• The size of the debt

• How recent the CCJ is, as newer judgments affect your score more heavily than older ones.

• Whether it’s paid (“satisfied”), or if it is still outstanding 

• If your existing credit profile has a clean record, or if it already contains late payments or defaults.

• The number of CCJs, multiple judgments can have a compounding effect.

Even a single CCJ will cause a business’ credit score to drop significantly and can make a strong business look high risk in the eyes of lenders and suppliers.

How long do CCJs stay on a business credit report?

If the CCJ is paid within 30 days of its issue, it will be removed from your credit report entirely. However if payment is not made within 30 days, CCJs remain on your business credit report for six years from the date they were recorded. This applies even if the debt is later paid or settled, although it will then show as “satisfied”, which is viewed a little more positively by lenders. If you are looking to get a CCJ removed, you can read our article on how to get a CCJ discharged.

After six years, it will automatically be removed from your credit file, regardless of the payment status. This removal can lead to a noticeable improvement in your business credit score, as older negative information carries less weight once it’s gone.

How much will your business credit score increase after a CCJ is removed?

When a CCJ is removed from your business credit report, most companies see a clear and positive lift in their credit score. The exact increase varies. There’s no fixed number of points, because every business credit profile is assessed differently. Credit reference agencies consider a range of factors, so the level of improvement depends on your overall financial picture, including:

• Your credit history: If you’ve managed accounts responsibly since the CCJ was issued, your score is likely to rise more quickly.

• Other negative marks: Missed payments or high borrowing levels can reduce the size of the improvement.

• Your current financial behaviour: Making payments on time and keeping credit use low helps your score recover faster.

Even if the increase isn’t immediate, the removal of a CCJ is an important milestone. It shows lenders that your business has moved on from previous financial difficulties and is managing credit in a more stable way.

Steps to take after a CCJ is removed

When that six year mark passes, or when you’ve had a CCJ satisfied and removed, it’s the perfect time to strengthen your credit profile. Here's some steps you can take to rebuild your credit score:

1. Regularly check your business credit report
   Once the CCJ has been removed, keep checking your business credit report to make sure all information is accurate and up to date. Regular monitoring helps you spot any new negative marks early, take action quickly, and identify the areas where your business credit profile can improve.

2. Pay all bills and suppliers on time
   Consistent, on time payments are a good way to build up a credit history, which will have a positive impact on your credit score.

3. Keep your credit utilisation low

   Try to use 30% or less of your available credit. This shows your business can manage borrowing sensibly, maintain healthy cash flow, and avoid appearing too dependent on debt.

4. Avoid unnecessary applications
   Try to limit how often you apply for new credit. Each application triggers a credit check, and too many in a short period can slightly lower your score and signal higher risk to lenders.

5. Build new, positive credit lines
   You can open small, manageable credit accounts and repay them on time. Consistent, responsible repayments help rebuild your business’s credit history and strengthen your reputation with lenders.

For more tips on how to rebuild after a CCJ is removed, read our article on how to improve your credit score.

Monitoring your business credit score

Your business credit score changes over time, so keeping an eye on it helps you spot issues early and take action before they affect your reputation. When you sign up for a Capitalise account, you can:

• Check your current business credit score

• Track changes over time

• Get alerts when new information (like a CCJ) is added or removed

• Understand what’s influencing your score and how to improve it

Having a CCJ or default removed from your business credit report is a major milestone. It won’t instantly make your business credit perfect, but it gives you a fresh foundation to build on. With time, consistent financial management, and regular monitoring, your score can recover, and even become stronger than before.