To improve your credit score and make yourself more credit qualified you can delete any credit judgments that you may have on your credit report.
A judge will order your owed obligation as valid when he sees paperwork for it. You will have to make payment on the debt when it is court ordered. This happens when you leave an unsettled debt on your credit report for too long.
If you are trying to get a loan while you have credit judgments against you; it creates a set back in achieving this goal when you have credit judgments.
There are various ways to remove credit judgments:
1. Push for a Motion to Vacate
There are varying court procedures and requirements in all states, so if this is the option you chose, you will have to find out about those procedures. If your vacate request is approved then the credit judgment gets deleted from your credit report immediately.
2. Check for the Statute of Limitations for your State.
In Texas, the statute of limitation on judgments is 10 years, but can be revamped within 2 years after expiration. Maximum interest rate on a judgment is 8.25% which is lower than the previous 10%.
Typically a credit judgment can stay on your credit report for 7 years; but for 20 years they can still be collected on. If the credit judgment stays open and has not been collected, then after the 20 years is up 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 object to the credit judgment as "obsolete" with the credit bureaus. This will erase the credit judgments that have exceeded your state's statute of limitations.
3. Negotiate for Removal
You may also try to negotiate a pay for delete with the original creditor to get the judgment erased entirely from your credit report. If you just pay the judgment without negotiating for it to be deleted as well, then it will still be reported on your credit report and updated as paid.
Best of luck.
A judge will order your owed obligation as valid when he sees paperwork for it. You will have to make payment on the debt when it is court ordered. This happens when you leave an unsettled debt on your credit report for too long.
If you are trying to get a loan while you have credit judgments against you; it creates a set back in achieving this goal when you have credit judgments.
There are various ways to remove credit judgments:
1. Push for a Motion to Vacate
There are varying court procedures and requirements in all states, so if this is the option you chose, you will have to find out about those procedures. If your vacate request is approved then the credit judgment gets deleted from your credit report immediately.
2. Check for the Statute of Limitations for your State.
In Texas, the statute of limitation on judgments is 10 years, but can be revamped within 2 years after expiration. Maximum interest rate on a judgment is 8.25% which is lower than the previous 10%.
Typically a credit judgment can stay on your credit report for 7 years; but for 20 years they can still be collected on. If the credit judgment stays open and has not been collected, then after the 20 years is up 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 object to the credit judgment as "obsolete" with the credit bureaus. This will erase the credit judgments that have exceeded your state's statute of limitations.
3. Negotiate for Removal
You may also try to negotiate a pay for delete with the original creditor to get the judgment erased entirely from your credit report. If you just pay the judgment without negotiating for it to be deleted as well, then it will still be reported on your credit report and updated as paid.
Best of luck.
About the Author:
Home Buddies is a Houston credit repair coach for real estate investors. Home Buddies coaches clients through the process of improving credit and helps them overcome obstacles to financing real estate and growing their portfolio.
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