Home Buddies - Delete Credit Judgments for a Better Credit Score
When you have any credit judgments on your credit report, erasing them is a great way to boost your credit worthiness, as well as maximize your credit score.
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 credible because he has seen documentation for it.
One of the other extensive set backs of having any credit judgments is that it can be nearly incapable 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 adhere itself to your real property.
Here are some possible ways to remove credit judgments:
1. Get a Motion to Vacate
Your credit judgment can be removed from your credit report immediately if your vacate request is approved. 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.
For credit judgments here in the state of Texas, the statute of limitations is 10 years, but after this runs out it can get renewed within 2 years. The interest rate on judgments used to be 10% now it is only 8.25%.
A credit judgment can still be collected on for 20 years; even though they typically only stay 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 up.
Credit judgments that are past your state's statute of limitations can be removed with the credit bureaus. You will have to object to that particular judgment as being "obsolete".
3. Arrange for a Removal
Another 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 show on your credit report.
Best of luck.
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 credible because he has seen documentation for it.
One of the other extensive set backs of having any credit judgments is that it can be nearly incapable 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 adhere itself to your real property.
Here are some possible ways to remove credit judgments:
1. Get a Motion to Vacate
Your credit judgment can be removed from your credit report immediately if your vacate request is approved. 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.
For credit judgments here in the state of Texas, the statute of limitations is 10 years, but after this runs out it can get renewed within 2 years. The interest rate on judgments used to be 10% now it is only 8.25%.
A credit judgment can still be collected on for 20 years; even though they typically only stay 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 up.
Credit judgments that are past your state's statute of limitations can be removed with the credit bureaus. You will have to object to that particular judgment as being "obsolete".
3. Arrange for a Removal
Another 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 show on your credit report.
Best of luck.
About the Author:
Home Buddies is a houston credit counseling coach for investors. Home Buddies develops and implements a customized strategy to improve credit and builds a business development strategy to help investors or homeowners overcome problems to financing real estate and growing their portfolio.
posted by Debt Consolidation Loan at
1:17 AM
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