A judgment on your credit report means you have been sued for payment of a debt. It is a legal proceeding that will give the creditor extra time to try and collect on the debt.
A judgment gives the debt collector up to 20 years to collect on a debt. This is beyond the 7 year statue of limitations that applies to most debts. Often judgments are granted on unsecured debts.
It is also becoming common for debt collectors to renew judgments. This means after 20 years if they have still been unable to collect the debt, they can renew the judgment and have the authority to collect on the debt for another 20 years.
A judgment will drastically reduce your credit score. Be aware that paying a judgment will not remove it from your credit report.
If you pay a judgment it only changes the mark to a satisfied judgment. It is still a negative mark and will not help improve your credit score.
The most effective way or removing judgments is done by disputing the judgment. This means you are challenging the accuracy or validity of the judgment.
This is done directly with the credit bureaus. It is done by writing a credit repair letter to dispute the judgment.
If a judgment is not verified as accurate it must be deleted by the credit bureaus. Often when listings are disputed they are removed regardless of their accuracy.
The listing will be removed because it costs the debt collectors money to verify the accuracy of a listing. Frequently debt collectors don't want to spend the money to verify a listing.
However you will have trouble getting the credit bureaus to investigate the listing. This is because it costs the credit bureaus potential profits to investigate listings.
This is why some people have hired professional credit repair service to dispute negative listings on their behalf.
For more online credit repair tips or for a free credit repair letter visit us.
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