South Texas Lawyer How A Judgment Could Affect your Credit Score
Posted: February 10th, 2009 | Author: admin | Filed under: Videos From Youtube | Tags: How A Judgment Could Affect your Credit Score, legal credit repair, remove bad credit, repair credit score, repairing bad credit, repairing credit, south Texas lawyer | No Comments »
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There Is Power In The Numbers
The credit score scale runs from 300 to 850. Most people fall in between 600 and 800.Your credit score happens under the table, but if you have a cell phone account, refinanced your home, or signed a lease on a car, your credit score was pulled.
If you rented an apartment, got braces, bought cell phone service, applied for a job that involved handling a lot of money, or needed to get utilities connected, there’s a good chance your score was pulled. The power in the numbers can help credit card companies and banks decide if they will give you a line of credit, increase your credit or decline your credit.
So, the bottom line is that your credit score is a big deal to anyone who may be involved in loaning you money or giving you credit know that they are assessing your risk to reward ratio, and if your numbers don’t add up, your application most likely will be denied.
How Will A Judgment Affect My Credit Score?
Judgments may have a worse effect on your credit score than collections. Since judgments may be reported much longer than collections, depending on which state you reside in, they may wreak havoc on your credit score for many years. Judgments appear in the "public records" section of your credit report, which is different than the section that contains collections. Also, in much the same way as a collection, once a judgment is reported on your credit report, it will still show as "paid" even after you pay it off. Many states also allow judgments to accrue interest, so don’t assume that the amount shown on your credit report is the actual total amount due. It’s never a good idea to ignore judgments for this very reason. Some states allow for double digit interest and additional fees to accrue, so the balance of a judgment could easily double or triple in a few years time. Don’t let judgments go a very long time without addressing them.
Judgments are typically the result of creditors pursuing legal action against consumers who failed to pay various debts. Some credit card companies may pursue legal action once an account goes to collection, but usually only if the amount is worth them hiring an attorney and filing a lawsuit. Once a lawsuit is filed, the debtor must be legally served and a court date is set once this occurs. And if the debtor can’t be located, the creditor may file papers to circumvent the serving process. In either case, the creditor will most likely be awarded a default judgment if they do not show up to court.
Many judgments can be settled for less than the full amount by either negotiating with the creditor for a release of judgment or seeking the help of an attorney that specializes in credit litigation. Many attorneys may offer to work with a creditor who has obtained a judgment for a small fee of a few hundred dollars or even less. Once a settlement is reached, make sure to get a release of judgment to prove that it’s been paid or settled and send this to the credit bureaus so your credit rating can improve.
Since credit scores are determined by an algorithm, it’s impossible to know exactly what effect a judgment will have on the score. But one thing is for sure: a judgment does not help your credit rating. If you suspect a creditor may have been awarded a judgment against you, obtain a free credit report today and make arrangements to either pay or settle the judgment as soon as possible.
By: John Rasor
Article Directory: http://www.articledashboard.com
About the author: John Rasor is the owner of Dallas, Texas based www.creditscorecowboy.com/ Credit Score Cowboy is one of the most unique on line resources in the world for free credit score reports, free credit scores, secured credit cards, identity theft protection and a BLOG with a wealth of information about credit and how to raise your credit score.
You will be well represented by a South Texas Lawyer
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