Home Buddies - Delete Judgments and Improve Your Credit Score
Credit judgments on your credit report are very detrimental to your credit score and they can make you look less credit qualified to any loan originators.
If you have unsettled debts just sitting there on your report for too long, then you are increasing the risk of the creditor taking you to court to get a credit judgment. Credit judgments are a court order that demands payment from you on a contract or obligation you made. A credit judgment is the "ultimate validation" of your owed debt because a judge has usually reviewed documentation and has ruled that the debt is in fact good.
One of the other major impairments of having any credit judgments is that it can be nearly infeasible to get extensions of credit with unpaid credit judgments on your credit reports; especially if you are trying to get a mortgage for a home, since a credit judgment can tie itself to your real property.
You may try to erase credit judgments by doing any one of these things:
1. Get a Motion to Vacate
Your credit judgment can be erased from your credit report immediately if your vacate request is granted. If you choose to do this you will need to find out about the court procedures in your area.
2. Get the time limit for the Statute of Limitations in your State for credit judgments.
The statute of limitations on credit judgments is 10 years here in Texas, but can be restored within 2 years of expiration. The interest rate on judgments used to be 10% but now the rate is 8.25%.
A credit judgment can still be collected on for 20 years; even though they usually only remain on your credit report for 7 years. An extension can still be approved if the credit judgment is still open and uncollected after the 20 years is expired.
If the statute of limitations has been exceeded (as per your state's limits) then you can dispute the credit judgment as "obsolete" with the credit bureaus. This will delete the credit judgments that are past your state's statute of limitations.
3. Mediate a Removal
Another way to delete credit judgments is to negotiate with the creditor that the judgment is open with. You need to try to get them to dismiss (remove it completely from your credit report) the credit judgment by paying it in full. This is much better than just paying it off because the credit judgment will just be updated on your credit report as "paid" and it will still be on your credit report.
Best of luck.
If you have unsettled debts just sitting there on your report for too long, then you are increasing the risk of the creditor taking you to court to get a credit judgment. Credit judgments are a court order that demands payment from you on a contract or obligation you made. A credit judgment is the "ultimate validation" of your owed debt because a judge has usually reviewed documentation and has ruled that the debt is in fact good.
One of the other major impairments of having any credit judgments is that it can be nearly infeasible to get extensions of credit with unpaid credit judgments on your credit reports; especially if you are trying to get a mortgage for a home, since a credit judgment can tie itself to your real property.
You may try to erase credit judgments by doing any one of these things:
1. Get a Motion to Vacate
Your credit judgment can be erased from your credit report immediately if your vacate request is granted. If you choose to do this you will need to find out about the court procedures in your area.
2. Get the time limit for the Statute of Limitations in your State for credit judgments.
The statute of limitations on credit judgments is 10 years here in Texas, but can be restored within 2 years of expiration. The interest rate on judgments used to be 10% but now the rate is 8.25%.
A credit judgment can still be collected on for 20 years; even though they usually only remain on your credit report for 7 years. An extension can still be approved if the credit judgment is still open and uncollected after the 20 years is expired.
If the statute of limitations has been exceeded (as per your state's limits) then you can dispute the credit judgment as "obsolete" with the credit bureaus. This will delete the credit judgments that are past your state's statute of limitations.
3. Mediate a Removal
Another way to delete credit judgments is to negotiate with the creditor that the judgment is open with. You need to try to get them to dismiss (remove it completely from your credit report) the credit judgment by paying it in full. This is much better than just paying it off because the credit judgment will just be updated on your credit report as "paid" and it will still be on your credit report.
Best of luck.
About the Author:
Home Buddies is a Houston Credit Repair Coach for homeowners and real estate investors. Home Buddies' Credit Coaching Program takes clients through the process of restoring credit and builds a custom Business Development Strategy to overcome the obstacles to financing properties and growing a portfolio.
posted by Debt Consolidation Loan at
4:04 AM
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