What is a judgment on my credit report?
A civil judgment on your credit report is a public record placed on your credit report by the credit bureaus. Public records are collected by the credit bureaus and used to show future lenders your credit history. It’s basically a decision by the court describing the result of a lawsuit. Chances are your creditor had sued you in order to obtain the debt you owed and won.
What should I do next time if a collection agency sues me?
If a collection agency sues you, you will need to either pay the debt quickly or else appear before a judge in court. The worst thing you can do is ignore it. However, most people do ignore it so usually the creditor wins by default as the defendant doesn’t show up for court. If you don’t show up or if you lose your case in court, a civil judgment will be issued against you. Typically you will be penalized by having a lien placed upon your house, or having your wages garnished. In some cases you may even be forced to forfeit your belongings.
How does a judgment affect your credit score?
A judgment is one of the most damaging things to have on your credit report. Unlike collections which involve a dispute between two private parties and are almost always handled privately, a judgment occurs when there is a court-ordered mandate to repay a debt. This can occur in situations such as failure to pay child support, alimony, or civil and small claims lawsuits. Judgments affect your credit adversely. If you have a judgment on your credit report, your score will be lower and potential creditors will be hesitant to loan you money.
How long does a judgment stay on your credit report?
A judgments remains on your credit report for 7 years from the date filed. It will negatively affect your credit scores for 7 years, but less and less as time goes on. However, it is possible to have judgments removed from your credit report. If you are able to get it removed, you will not have to wait up to 7 years before being able to get a mortgage, car loan or any other type of credit again. Read my story below to see how I got my judgment deleted from my credit reports.
What about paid judgments?
Paid/satisfied judgments affect your credit the same as unpaid/unsatisfied judgments. They also stay on your credit report for 7 years from the date filed. Many people think that once they are paid, they will be removed from their credit report, however that is not the case.
How I got judgments removed from my credit report.
I lost my job a while ago and it took me a while to find a new one. I basically lost my income stream and resorted to paying my bills with credit cards and other loans. The credit card spending quickly caught up to me and I found myself over my head. While I tried to get caught up on my credit card debts, I was getting further and further behind on all my other bills, eventually I got sued and had several default judgments against me. The only way out I could see was bankruptcy.
Initially after I filed for bankruptcy I figured I could get by without having good credit. I quickly found out that I was wrong. Almost everything I wanted to buy depended on me having good credit. After getting turned down several times, I decided I needed help.
Lexington Law helped me take control of my credit.
I was talking to a friend one day and he told me to check out Lexington Law. I called the number he gave me: 800-220-0084 and spoke to a credit expert who was very friendly and understanding of my situation. That was one of the best financial decisions I have made. Since I signed up with Lexington Law, my credit score has gradually improved. I kept getting letters telling me that new things have been removed from my credit report.
Judgments Deleted from My Credit Report:
My credit scores have drastically improved since there are no longer any negative accounts on my credit report. Here is a snap shot of my credit scores since I signed up with Lexington Law:
“WOW!! The service with you guys is unbelievable! Thanks for all your help. You guys are helping me build a better future. Thanks.”
— M.W., Lexington client
“I just wanted to thank you for what you have done thus far… I am looking forward to the day when my credit reports will be looking like new again. It’s a pleasure to have you on my team… Thank You.”
— L.S., Lexington client
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