To boost your credit score and make yourself more credit qualified you can eliminate any credit judgments that you may have on your credit report.
If you have unsettled debts just sitting there on your report for too long, then you are widening 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 credible.
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.
You may try to erase credit judgments by doing any one of these things:
1. Push for a Motion to Vacate
Your credit judgment can be removed from your credit report immediately if your vacate request is granted. If you choose to do this you will have to find out about the court procedures in your area.
2. Get the time period for the Statute of Limitations in your State for credit judgments.
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%.
Judgments will typically remain on your credit report for 7 years; however they sometimes remain collectible for 20 years. As soon as the 20 year period is expired, it is pretty simple to get an extension if the judgment is open and has not yet been collected.
Credit judgments that have exceeded your state's statute of limitations can be removed with the credit bureaus. You will have to dispute that specific judgment as being "obsolete".
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.
If you have unsettled debts just sitting there on your report for too long, then you are widening 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 credible.
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.
You may try to erase credit judgments by doing any one of these things:
1. Push for a Motion to Vacate
Your credit judgment can be removed from your credit report immediately if your vacate request is granted. If you choose to do this you will have to find out about the court procedures in your area.
2. Get the time period for the Statute of Limitations in your State for credit judgments.
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%.
Judgments will typically remain on your credit report for 7 years; however they sometimes remain collectible for 20 years. As soon as the 20 year period is expired, it is pretty simple to get an extension if the judgment is open and has not yet been collected.
Credit judgments that have exceeded your state's statute of limitations can be removed with the credit bureaus. You will have to dispute that specific judgment as being "obsolete".
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.
About the Author:
Home Buddies is a houston credit counseling coach for investors. Home Buddies develops and implements a customized strategy to boost credit and creates a business development strategy to help investors or homeowners overcome obstacles to financing real estate and building their portfolio.
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