A county court judgment will be made against you if it is believed that you owe someone a valid debt and have not made arrangements to pay it back. A record of all county court judgments are kept by financial institutions so that they can refer to them when they want to make a decision on a refinancing project.

For all intents and purposes a request to refinance is equivalent to a loan and in most circumstances similar stringent checks will be carried out to ensure that you are not a bad lending risk. This article aims to concentrate on one major cause of problems as you try to refinance. County court judgments are a sure way for a lender to deny you the possibility of refinancing. However you may be able to take some steps that will mitigate your county court judgments. This article aims to explore some of those steps.

The Reality of County Court Judgments

• The first thing is to try and ensure that things do not get to a stage where you have to be dealing with the courts. If you have issues with paying a debt, it is better to discuss with the lender earlier on and offer some alternative payments solutions rather than waiting for the county court to set you up. Once a county court judgment is made against you, it is unlikely that it will ever be completely removed from the database.

• It is far better to make an appearance in person at county court hearings rather than doing things on a remote basis. If you make a personal appearance, you will be able to discuss with the lender and the judges themselves about alternatives to having a county court judgment passed.

• If there is an asset attached to the loan, do not attempt to refinance on that same asset because you will be caught out. If you are not caught out, you may end up turning a secured loan into a non secured loan which could have significant impact on your repayment terms.

• If despite all your best efforts the county court judgment is issued, then your first port of call is to see whether you can find means for paying off the debt. If you manage to pay off the debt, the county court judgment will still be picked up by lenders but it will include a clause that clearly notifies whoever is concerned that you have in fact paid the debt. This might somehow improve your credit rating for a refinancing project.

• Do not accumulate further debts when you already have a county court judgment against you. If you are struggling to pay off one debt, things will get much harder when you have multiple debts. The lenders will also not believe in your refinance application if it appears that you are continuing to place yourself in an even more precarious situation than you are in at the moment. One of the signs of a good credit risk is when someone is able to know when to stop borrowing.