A credit report provides great insight into your financial discipline or lack thereof. The report is a record of everything you have done with your finances. A credit report provides a summary of your credit history; indicating your credit accounts. Every lender you borrowed from provides a report of each account that you established with them.
The report includes:
• The type of credit account you run
• Your loan amount or credit limit
• The account balance
• Your payment or repayment history
The credit report often also includes a civil judgment that was entered against you.
Civil judgments refer to the debts the courts determine you owe somebody. The courts usually arrive at this decision after looking at the body of evidence and proof the plaintiffs present. The judges will determine you are guilty as charged and enter a sentence against you. Once this happens, expect the judgment to appear on the credit report. After all, the judgments indicate you owe some money. They are a record of the debts you owe via the courts.
Civil judgments are issues of the public record thus their appearance/inclusion in the reports. The good news is you can learn how to get a civil judgment removed from your credit.
Here is what you should do.
Confirm the Authenticity of the Judgment
First, confirm whether the judgment appears on the report in error or as an accurate representation of your situation. If it’s accurate, then one of your options would be to wait for seven years to elapse before the judgment disappears from your credit records. That is what the law states and requires of all civil judgments.
Pay the Debt
Just because seven years have elapsed does not mean you stop studying the credit report religiously. Also, make sure you pay the debt entered in the judgment in full before the seven years expire. After paying it, follow up with the creditor to check if they have notified the courts. Once this happens, you should see the word “Satisfied” against the debt. This status change will earn you some advantages as any person who sees that you have paid the debt will treat you favorably. Your credit standing in the eyes of a potential lender or anyone else will be better since this is evidence that you’ve settled the debt.
Dispute with the Agency
Assuming the judgment appears on the report erroneously, you would need to take a different course of action. The main thing to do in such a situation is to file a dispute with the agency that wrote the credit report. Let the agency know that the courts have never found you guilty or passed a civil judgment against you.
Therefore, check your credit reports, especially if somebody took you to court recently and the judges determined that you have a debt to pay. This vigilance should also be applied regularly even if nobody has ever made a financial claim against you in court. Take the necessary steps, as stipulated above, to get the judgment removed from the credit report.
Do not hesitate to contact AAA Credit Guide for more information on this matter.