How Long Does a Judgment Stay on My Credit Report?

The economy has caused many people to lose their jobs which result in bills going unpaid. Some debt collectors will pursue you with a number of collection activities and tactics which include phone calls to your home and job. They may also send letters to your residence all in an attempt to collect on your past due debt. If none of these work a debt collector could eventually pursue legal action and get a judgment against you.

Once they have a judgment they have many remedies they can pursue. A lien can be filed or they can garnish your wages. Some creditors will go after the money in your checking or savings account. A judgment normally gets reported to a credit reporting agency and ultimately ends up on your report. When a judgment shows up on your credit report it can do significant damage. Right away your credit score is lowered which will cause you to pay higher rates of interest for various credit products and services.

If you try to apply for other credit with other creditors your request could be denied because of a judgment. A judgment can remain on your credit file for approximately 7 years from the date it was filed. After seven years the judgment should automatically drop from your credit report. If it is not removed automatically then you can contact the credit reporting agency and they will in turn contact the creditor which issued the judgment to verify that it has been paid. Having a judgment removed helps to improve your credit score by increasing it.

Always order a free copy of your credit report at least once per year. You will be able to verify if there are any delinquencies on your report which do not belong to you. Errors do happen and things are reported on a consumer's credit report which they have no knowledge of everyday.

With most cases you can avoid a judgment, if you contact the creditor and make some type of repayment arrangements. Creditors are more willing to work with you because they understand these are some really tough economic situations we are facing. People are losing their jobs in record numbers. Some people are doing everything they can just to survive. In the past creditors were more harsh and deceptive but in today's environment they know if they push too hard it will force many consumers over the edge into bankruptcy.