Have you discovered you have a judgment against you? What exactly does this mean and how can you fix your credit report?
First let's examine what this mark means. It means that a lender is taking your to civil court to collect a debt. When you finance a purchase or apply for a credit card you typically agree in the fine print that you give the lender permission to file a law suit if you stop making your payments.
You should be notified of your upcoming court case. You need to show up, even if all you have is a bad luck story.
Just showing up will show the judge that you are taking this serious and you do want to repay this debt or dispute it. If you are not properly notified and have a default judgment placed against you, you may have resource to get this decision reversed.
If you can not pay the debt or come to an agreement in court you will be give 30 days to resolve the issue. If you are unable or the lender is unwilling then they can go back to court and potentially have a lien placed against your property, and even have your wages garnished. It will depend on what state you live in as to the measures the collector can take to recover the debt.
However the bottom line is your credit is absolutely ruined. You have next to zero chance at getting approved for any unsecured debt. You will be destined to secured credit lines which aren't much good outside of reporting to the credit bureaus.
How Can I Remove This From My Credit Report?
Good question as this is the most important! You have a few choices and it depends on where you are in the judgment process. If this credit judgement is already on your credit history then you should first dispute it.
You can file a dispute yourself or hire a legal credit repair service to do it on your behalf. A dispute letter must be filled with each credit bureau. Judgment records are held on public record, typically at the county court house.
This means that once the credit bureau conducts an investigation into the judgment they will have to call the local court house and request that a person physically goes and verifies the judgment against you. We have heard that it is not uncommon for these items to not be verified because of the great bureaucracies in our government.
Not to mention government employees having a reputation for one of the highest work ethics. It isn't as easy as clicking a couple of keys on a keyboard which is what most lenders are able to do to verify a debt. So in all fairness it is really a result of just antiquated or outdated record keeping services.
In sum, you can remove a judgment from credit report and without waiting seven or ten long years! You don't just have to live with a bad credit score, take action today and fix a damaged score.