Negative information, such as judgments, can remain on credit reports for a specific period. Generally, this information can be reported for seven years, or until the statute of limitations runs out, whichever is longer (Consumer Financial Protection Bureau, 2023). However, bankruptcies can stay on credit reports for up to ten years (Experian, 2022).
Key Facts
- Duration: A judgment can remain on your credit report for a certain period of time. Generally, negative information, including judgments, can be reported for seven years.
- Statute of Limitations: Information about a lawsuit or judgment can be reported for seven years or until the statute of limitations runs out, whichever is longer.
- Bankruptcies: Bankruptcies can stay on your credit report for up to ten years.
- Impact on Credit Score: Judgments do not directly affect your credit score because they are not included in credit score calculations. However, potential lenders may search for this information from other sources and it may impact your ability to qualify for credit.
- Public Record: Judgments are considered public records and can be accessed by potential creditors, employers, landlords, and others.
- Removal of Judgments: There are two options to remove a judgment from your credit report. One is to file to vacate the judgment with a court, which can be difficult. The other option is to obtain a release of the judgment by showing that the debt has been satisfied.
Impact of Judgments on Credit Scores
Judgments do not directly affect credit scores because they are not included in credit score calculations (Kretzer Firm, 2023). However, potential lenders may search for this information from other sources, such as public records, and it may impact the ability to qualify for credit (Experian, 2022).
Judgments as Public Records
Judgments are considered public records and can be accessed by potential creditors, employers, landlords, and others (Kretzer Firm, 2023). This means that even if a judgment is not included on a credit report, it can still be found through other means.
Removal of Judgments from Credit Reports
There are two options to remove a judgment from a credit report (Kretzer Firm, 2023):
- File to Vacate the Judgment: This can be difficult, especially if the judgment was entered due to a default judgment.
- Obtain a Release of the Judgment: This involves filing a document with the court showing that the debt has been satisfied.
Conclusion
Negative information, including judgments, can remain on credit reports for a significant period of time. While judgments do not directly affect credit scores, they can still impact the ability to qualify for credit. It is important to be aware of the potential consequences of judgments and to take steps to remove them from credit reports if possible.
References
- Consumer Financial Protection Bureau. (2023). How long does negative information remain on my credit report? Retrieved from https://www.consumerfinance.gov/ask-cfpb/how-long-does-negative-information-remain-on-my-credit-report-en-323/
- Experian. (2022). Judgments no longer appear on a credit report. Retrieved from https://www.experian.com/blogs/ask-experian/judgments-no-longer-included-on-credit-report/
- Kretzer Firm. (2023). How long does a judgment stay on your credit report? Retrieved from https://kretzerfirm.com/how-long-does-a-judgment-stay-on-your-credit-report/
FAQs
How long does a judgment stay on my credit report?
**Answer:** Judgments can remain on your credit report for up to seven years, or until the statute of limitations runs out, whichever is longer.
Do judgments affect my credit score?
**Answer:** Judgments do not directly affect credit scores because they are not included in credit score calculations. However, potential lenders may search for this information from other sources, such as public records, and it may impact your ability to qualify for credit.
How can I remove a judgment from my credit report?
**Answer:** There are two options to remove a judgment from your credit report:
* File to vacate the judgment with a court
* Obtain a release of the judgment by showing that the debt has been satisfied
What is a statute of limitations?
**Answer:** A statute of limitations is a law that sets a time limit on how long legal action can be taken. After the statute of limitations expires, a lawsuit cannot be filed, even if the debt is still owed.
What is a public record?
**Answer:** A public record is a document that is available to the public. Judgments are considered public records and can be accessed by potential creditors, employers, landlords, and others.
Can I dispute a judgment on my credit report?
**Answer:** Yes, you can dispute any inaccurate information on your credit report, including judgments. You should contact the credit bureau that is reporting the judgment and provide documentation to support your dispute.
What should I do if I have a judgment on my credit report?
**Answer:** If you have a judgment on your credit report, you should contact an attorney to discuss your options for removing it. You may also want to consider contacting a credit counselor to help you improve your credit score.
How can I avoid getting a judgment on my credit report?
**Answer:** The best way to avoid getting a judgment on your credit report is to pay your debts on time and avoid defaulting on loans or credit cards. If you are sued, you should respond to the lawsuit and try to resolve the matter before a judgment is entered against you.