Key Things to Know About Removing Judgement from a Credit ReportKey Things to Know About Removing Judgement from a Credit Report
Several things captured in your credit report can affect your credit score and, ultimately, your finances. Remember that your credit report is very detailed, covering details like repayment history, uncleared debts, overdue debts, and court judgments regarding debts.
All these items can affect your creditworthiness, especially court judgments which can reflect on your credit report for up to five years which is a long time. You can follow some steps to remove judgment from your credit report. This post explains the key things you need to know about eliminating judgments from a credit report.
What Is a Judgement on Your Credit Report?
Sometimes you can be sued by a creditor if you borrowed money and failed to repay. A court session is held, and if you happen to lose the case, the court will issue a judgment for the same. This judgment will be reflected in your subsequent credit report unless you have it removed. Your ability to obtain credit will be significantly affected if judgments appear on your credit report. Even if lenders agree to give you credit, they can do it at a slightly higher interest rate.
What Is the Basis for Removing a Judgment?
Judgments are entered in your credit report by credit reference bureaus. Sometimes the credit information captured in your credit report may not be the actual reflection of your true credit information. You can apply for the removal of any judgment captured in your report that you believe is false. If you have paid your debt or the debt details captured belong to a different person, you can apply for the judgment to be removed.
How Can a Judgment Be Removed from Your Credit Report?
The first step is to get a confirmation in writing from the lender who sued you for the debt that you have indeed paid them back. After obtaining the letter, you will send it to the credit referencing bureau requesting the judgement to be removed from your report. Sometimes they might decline to vacate the judgment upon which you are required to obtain a signed consent order or send an application to the court requesting the judgement to be removed from your report.
Can Your Dispute a Judgement in Your Credit Report?
Yes, it is possible to dispute a debt that has led to judgement appearing on your credit report. To do so, you will send an application to the court that ruled against you, requesting the judgment to be removed. Your application must clearly state why you were never successful in the first defense and provide a compelling case stating why the judgment should be removed.…