Judgments can stay on your file for a minimum of seven years if you don’t clear credit history. But, it doesn’t mean you cannot re-establish your credit right now to access more low-interest credits. Find out how to improve your credit rating after judgements.
Sometimes, we don’t know about the judgments until the judgment holder enforces them. It’s because we may have moved address or there were situations that prevented us from receiving the notification. Or, you may have just learned about it upon looking at the public record section of your credit report. It may not always be updated or accurately so make sure that you get a copy of your credit report regularly. While you can try to reopen the judgment you haven’t heard about, mere failure to get notified when the court has actually exerted efforts to serve you notice, you can’t guarantee success. What you can do however is to focus on doing things that can increase your credit rating, to offset the negative impact of the judgment on your score. If you improve your credit rating after judgements then you will be in a much more stable financial position. If you are unsure what a judgement is then take a quick read of this link.
Get a copy of your Credit Report from Top Credit Bureaus
Getting your credit report informs you about your past transactions; which may include your past and present loans, mortgages, debts, and credit cards. It is a compilation of your personal information, which also contains a hard copy of your financial status. It’s much better to get a copy of your credit report so that you can make sure that every detail is accurate and correct and that you don’t have much dirt on your paper- or even if you do, you could make some adjustments and then make the prints positive once more.
Your credit report shows your entire financial standing on paper. Creditors, employers, insurance companies, and child support agencies can obtain your file. Income notwithstanding, you are judged almost solely on the basis of the information contained in your credit report. It, therefore, makes sense to ensure that your file contains accurate information and portrays you in a positive a light as possible.
There are two things that creditors see when checking your account—your financial status and the likelihood that you will repay your debts. These two things go hand in hand. If your income is low, but you pay on time, you‘re more likely to get a loan than someone who has a very high income but always misses his payments.
Look for Outdated Information and Inaccurate or Wrong Entries in your Credit Report
Always look out for negative information because aside from damaging your score, they can stay on you report up to ten years. Here are some examples of that negative information:
- Bankruptcies that have been reported may show up on your report no more than ten years. If ever your case has been dismissed by court, which means that you didn’t get an order indicating that your debts have been discharged, then those ten years might just start at the exact day of the release.
- Lawsuits and judgments could stay on your report from the day you filed it-up to at least seven years. Some may stay for a shorter time, but the maximum is definitely seven years that they’ll stay in your credit report.
- Criminal Records may last on your report for only seven years. This may include some data pertaining to arrests or charges that have been filed. Any record of Criminal Convictions could be reported until further notice.
- Create a debt management strategy that would help you pay off all your debts– from utility bills to credit cards. Getting out of debt might be the best way to clean – or at least remove a little dirt on your report.
- Paying more than the minimum might actually do you good. As an alternative of settling for less, you’re actually settling for more; paying less, more payments. Instead of prolonging your own torment, you should just increase the percentage of money you’re paying. Change the usual 2% of the balance you have to at least 5% or 10% as maximum. Normal banks might take you paying longer as an advantage. They increase the interest, and instead of you paying lesser, you pay more than your actual debt.
- Having a proper budget may influence your payments. Making a budget is one of those “easier said than done” things. But honestly, you’d never know how great it could really influence your lifestyle until you try. Writing them down on a journal that’s reserved for “Budgeting Purposes only” may help you not just visualize them, but make them real. Allotting a certain percentage of your monthly budget for paying your debts can help you pay our debts faster. Having a budget helps you pay your debts- as well as keep you from being money and house broke at the same time.
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