How to Remove Credit Judgments to Improve Your Credit Score
Credit judgments on your credit report are very destructive to your credit score and they can make you look less credit worthy to any lenders.
Your chances increase of a creditor taking you to court to get a credit judgment when you leave unsettled debts on your credit report for too long. A court order will demand you to make payment on credit judgments. Your owed debt becomes the “ultimate validation” that you owe the debt because a judge has found the debt to be valid because he has seen documentation for it.
If you are striving to get a mortgage while you have credit judgments against you; it creates a set back in achieving this goal when you have credit judgments.
Here are some suggested ways to erase credit judgments:
1. Get a Motion to Vacate
There are different court procedures and requirements in all states, so if this is the option you go with, you will need to find out about those procedures. If your vacate request is approved then the credit judgment gets removed from your credit report immediately.
2. Find out about the Statute of Limitations in your State.
The statute of limitations on credit judgments is 10 years here in Texas, but can be renewed within 2 years of expiration. The interest rate on judgments used to be 10% but now the rate is 8.25%.
Judgments will usually remain on your credit report for 7 years; however they sometimes remain collectible for 20 years. Once the 20 year period is up, it is rather simple to get an extension assuming the judgment is open and has not yet been collected.
Credit judgments that have exceeded your state’s statute of limitations can be erased with the credit bureaus. You will have to object to that specific judgment as being “obsolete”.
3. Arrange for a Removal
You may also try to negotiate a pay for delete with the original creditor to get the judgment removed entirely from your credit report. If you just pay the judgment without negotiating for it to be removed as well, then it will still be reported on your credit report and updated as paid.
Best of luck.
Tags: personal debt consolidation loans, debt consolidation programs, debt consolidation organizations, free debt consolidation quote, debt consolidation home loan, bad debt consolidation, debt consolidation loan calculator