Houston Credit Repair Coach Talks About Removing Credit Judgments
When you have some credit judgments on your credit report, deleting them is a good way to recuperate your credit worthiness, as well as improve your credit score.
If you have unsettled debts just sitting there on your report for too long, then you are increasing 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 valid.
There are other impairments with credit judgments that can create difficulties to get supplements of credit; particularly in the case of the credit judgment adhering to your real property when you are striving to get a mortgage.
Here are some suggested ways to remove credit judgments:
1. Push for a Motion to Vacate
Your credit judgment can be deleted from your credit report immediately if your vacate request is approved. If you choose to do this you will have to find out about the court procedures in your area.
2. Check for the Statute of Limitations for your State.
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 stay collectible for 20 years. Once the 20 year period is up, it is rather 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 need to dispute that specific judgment as being "obsolete".
3. Negotiate for Removal
You may also try to negotiate a pay for delete with the original creditor to get the judgment deleted completely 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.
Wish you well.
If you have unsettled debts just sitting there on your report for too long, then you are increasing 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 valid.
There are other impairments with credit judgments that can create difficulties to get supplements of credit; particularly in the case of the credit judgment adhering to your real property when you are striving to get a mortgage.
Here are some suggested ways to remove credit judgments:
1. Push for a Motion to Vacate
Your credit judgment can be deleted from your credit report immediately if your vacate request is approved. If you choose to do this you will have to find out about the court procedures in your area.
2. Check for the Statute of Limitations for your State.
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 stay collectible for 20 years. Once the 20 year period is up, it is rather 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 need to dispute that specific judgment as being "obsolete".
3. Negotiate for Removal
You may also try to negotiate a pay for delete with the original creditor to get the judgment deleted completely 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.
Wish you well.
About the Author:
Home Buddies is a Houston credit repair coach for investors. Home Buddies coaches clients through the process of restoring credit and helps them overcome obstacles to financing properties and growing their portfolio.
posted by Credit Counseling at
1:19 AM
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