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.
This happens with larger unsecured debts. It will give the debt collector up to 20 years to collect payment. This is beyond the 7 year statue of limitations that applies to all other debts.
It has become common for debt collectors to renew their judgments against the debtor. This will give the debt collector another 20 years to try and recover payment on the debt.
A judgment will drastically reduce your credit score. Be aware that paying a judgment will not remove it from your credit report.
When you pay a judgment the listing will change to a satisfied judgment. This is still a negative mark and will hurt your credit score.
In order to delete a judgment you should dispute it. This means you are saying the judgment is inaccurate or invalid.
You dispute the judgment directly with the credit bureaus. This is done by writing a dispute letter to the credit bureaus.
If the judgment is not verified then it must be removed by the credit bureaus. It has been found that when negative listings are disputed they are often removed.
This is because it costs the debt collectors money to verify the accuracy or validity of a listing. Often debt collectors are unwilling to spend the money to verify a negative listing.
The difficult part is to get the credit bureaus to investigate a disputed listing. This is a result of the investigation costing the credit bureaus money that would otherwise be profit.
This is why some people have hired professional credit repair companies to dispute negative listings on their behalf.
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