Credit Report Judgement

A credit report judgement is a court order ordering repayment of a debt. A judgement on your credit report will affect your credit scores and generally will have to be paid before you can acquire a mortgage. The court order will require repayment during a specific period of time.

The majority of lenders will not allow you to close on a mortgage with a judgement on your credit. It will need to be paid in full and released before you will be allowed to close on your mortgage.

Once you have paid the judgement off and had it “released” It will still be showing on your credit report. This can be detrimental when it comes to applying for any other forms of credit.

Removing your credit report judgement can be as simple as writing a letter to each of the credit reporting agencies that the judgement is being reported on. Usually, it will be reporting to all three of the major credit bureaus, Equifax, Experian and Trans Union. If it has been paid, you should dispute the accuracy of the way it is reporting…i.e. the date or the original amount.

If the judgement is not verified within a certain time period, the item will be removed from your credit report. If it does comes back as verified, then you should write another letter disputing another part of the judgement as being inaccurate. You will need to follow up until your dispute has worked at all the credit bureaus that the credit report judgement is reporting on.

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