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Legal entries, like judgments, tax liens, bankruptcies and foreclosure cause significant deductions to an individuals credit score. These entries are a gigantic indicator of risk. Risk is what credit scores are all about. Try to think of the situation in an objective manner. If you were thinking about lending to someone and found out that another creditor had to sue them to recover money; do you think you'd reconsider before making the loan or possibly charge more interest to offset the perceived increase in risk? As far as credit is concerned, with any legal entry, being paid is simply a footnote. What needs to take place is for the proper DISPOSITION to be recorded. In the case of a judgment, the disposition is either a "Satisfaction of Judgment" or an "Order to Vacate Judgment" (dismissal). Call the courthouse where the judgment was recorded and ask the procedure (which varies from jurisdiction to jurisdiction) for obtaining the disposition appropriate for your case. More than likely, you will have to show proof of payment. After you obtain the disposition, be sure to take the additional step of having the new document recorded. There is usually a small fee for this, but it's well worth it. Recording this document will (hopefully) ensure that the disposition ends up on your credit report to "tie up" the legal entry in a nice bow. It's also a good idea to forward a copy directly to any credit bureau reporting the judgment, just in case. If you have a judgment and it is being paid on a monthly basis with all parties in agreement, how does this affect your credit?
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∙ 2006-01-10 21:28:56
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How many points does your credit score go up when a judgment is paid?
Each case is different. One of my clients had a very small judgment ($100)against and her score shot up 100 points when she paid it off.
Does closing a credit card account which was always paid on time harm your credit score?
Strangely enough, yes it does negatively but temporarily affect ones credit score.
How does paid closed wriiten off affect your credit report or score?
paid charge off affects your report as it is negative information
How long does judgment show on your credit?
Usually until the judgment is paid.
What is a judgment in personal finance?
When a person is taken to civil court (for example, a credit card company suing a cardholder to get paid back), the court makes a judgment for or against the plaintiff (entity initiating the lawsuit, in this example, the credit card company). If the judgment is for the plaintiff, the result is effectively a judgment against the defendant (the person taken to court in the example). Part of the judgment is the amount that is to be paid to the entity winning the court case (judgment). Judgements against a borrower (and the amount set to be paid by that borrower) will make their way onto the credit report and will cause a drop in credit score.
Does paying off your auto loan affect your credit score?
Yes, for the better. Any loan that is paid on time or paid off is a plus.
If you authorize someone else to use your credit card and that person does not have good credit does that affect your credit score?
No they don't care, so long as the expenses on your credit card are paid.
If you recently paid a judgment will sending a copy of the order to satisfy to the credit agencies adversley effect your credit score by making it more recent or does it go by the original date filed?
The Fair Credit Reporting Act allows that a judgment [paid or unpaid] be reported for seven years from the date the judment was entered, depending on your state of residence.
Once you pay off a high balance on a credit card how soon will that affect your credit score?
Once you have paid the credit card balance off it will affect your score the following month. This is because the credit agencies only update your credit once a month. So the month following the payment would reflect the new balance of $0 and the score would be raised at that time.
Is there a way to buy a home if your credit score is over 600 but you have a judgment against you?
You will need to prove that you have made an arrangement to pay the judgement or proof that it has been paid.
Can a judgment be removed from your credit report?
Yes...once it is paid.
Will a judgment be removed from a credit report if it is paid?
No. It will show that you had a judgment on your credit report for up to seven years, but it will show a zero balance.
