If you have any credit judgments on your credit report, deleting them is a excellent way to revamp your credit worthiness, as well as improve your credit score.
Your chances rise 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 call for 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 authenticated because he has seen documentation for it.
One of the other extensive impairments of having any credit judgments is that it can be nearly futile to get extensions of credit with unpaid credit judgments on your credit reports; especially if you are attempting to get a mortgage for a home, since a credit judgment can adhere itself to your real property.
Here are some possible ways to erase credit judgments:
1. File a Motion to Vacate
If this is what you choose, you will need to learn about court procedures in your area. However, understand that if the courts grants your vacate request the credit judgment should be removed from your credit report immediately.
2. Find out about the Statute of Limitations in your State.
In Texas, the statute of limitation on judgments is 10 years, but can be renewed within 2 years after expiration. Maximum interest rate on a judgment is 8.25% which is lower than the previous 10%.
Normally a credit judgment can remain on your credit report for 7 years; but for 20 years they can still be collected on. If the credit judgment remains open and has not been collected, then after the 20 years is gone it is still easy to get an extension.
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 remove the credit judgments that are past your state’s statute of limitations.
3. Mediate a Removal
A different way to remove 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.
Wish you well.
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