Defaults vs Judgments: Which Causes More Damage to your Credit File?
Are you wondering why you may have a bad credit rating even after keeping your credit card balances low or staying below your credit cards spending limits?
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James separated from his wife in 2016 and moved out of the family home. His ex-wife neglected payment on the Mortgage and Council rates and ignored the mail, resulting in two Default Judgments being made against the both of them by the bank and local council respectively.
James’ credit score dived to 201.
50% chance of adverse recorded at Equifax in the next 12 months.
Clean Credit was able to arrange for both matters to be set aside with the Courts, and both Court Judgments were deleted from James’ credit file. His credit score increased to 559 and he was able to move on with his life after the Divorce.
8% chance of adverse recorded at Equifax in the next 12 months.
This scenario is an example based upon previous customer journeys, but not any specific customer. Image is a model for illustrative purposes.
Are you wondering why you may have a bad credit rating even after keeping your credit card balances low or staying below your credit cards spending limits?
One of the most common questions we are asked is “Can Clean Credit remove my court judgement from my credit file?” The answer to this question can undoubtedly make all the difference to your business
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.