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Houston Credit Repair Coach Talks About Removing Credit Judgments

by Cliff Pape

Credit judgments on your credit report are very damaging to your credit score and they can make you look less credit qualified to any banks.

Your chances widen 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.

One of the other major drawbacks 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 attempting to get a mortgage for a home, since a credit judgment can secure itself to your realty.

You may try to delete credit judgments by doing any one of these things:

1. Get a Motion to Vacate

If this is what you decide, you will need to find out about court procedures in your area. However, know that if the courts grants your vacate request the credit judgment should be erased from your credit report rather quickly.

2. Find out about the Statute of Limitations in your State.

For credit judgments here in the state of Texas, the statute of limitations is 10 years, but after this finishes it can get renewed within 2 years. The interest rate on judgments used to be 10% now it is only 8.25%.

Judgments will normally linger on your credit report for 7 years; however they sometimes remain collectible for 20 years. As soon as the 20 year period is up, it is pretty easy 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 dispute that specific judgment as being “obsolete”.

3. Arrange for a Removal

Another way to erase 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 show on your credit report.

Good luck.

About the Author:
Home Buddies is a real estate investor credit repair coach. Home Buddies develops and implements a customized strategy to restore credit and creates a business financing strategy to help investors or homeowners overcome obstacles to financing properties and growing their portfolio.

This entry was posted on Monday, March 23rd, 2009 at 1:42 pm and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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