Read this TDECU post to learn more about judgments, including what they are, how long they remain on your credit report, and more.
Your credit score is that unassuming three-digit figure that credit bureaus compute and disclose upon request to prospective lenders to determine your likelihood or unreliability in repaying a loan. If there is a judgment on your credit history, you have undoubtedly noticed that it reduces your creditworthiness. Continue reading to find out how long a judgment remains on your credit report and what you can do about it.
A judgment against you can feel like a dark cloud hanging over your financial life. It’s a constant reminder of a debt you haven’t been able to pay, and it can have a significant impact on your credit score. But how long does this judgment stay on your credit report, casting a shadow on your financial future?
The Short Answer: It Depends
The length of time a judgment stays on your credit report depends on a few factors, including the type of judgment, the state where the judgment was issued, and whether the judgment has been satisfied
The Long Answer: Diving Deeper into the Details
Federal Law:
- Most negative information: 7 years
- Lawsuits or judgments: 7 years or until the statute of limitations runs out (whichever is longer)
- Bankruptcies: Up to 10 years
State Law:
- Judgments: Varies by state, but generally 7-10 years (renewable in some states)
- Satisfied judgments: May be removed sooner if reported as such to credit bureaus
The normal duration of judgments on your credit report under various circumstances is broken down here:
- Unpaid judgments: 7-10 years (depending on state law and potential renewals)
- Satisfied judgments: 7 years from the date of satisfaction (in most cases)
- Discharged bankruptcies: 10 years from the date of filing
What You Can Do to Minimize the Impact of a Judgment
Although a judgment cannot be removed, you can lessen its effects on your credit report and financial situation by doing the following:
- Pay the judgment as soon as possible. This will stop the judgment from accruing interest and prevent it from being renewed.
- Negotiate a settlement with the creditor. This could reduce the amount you owe and make it easier to pay off the judgment.
- Dispute any errors on your credit report. Make sure the judgment is reported accurately and that any satisfied judgments are removed promptly.
- Build positive credit history. By making on-time payments on your other debts, you can improve your credit score and offset the negative impact of the judgment.
Remember, a judgment doesn’t have to define your financial future. You can lessen its effects and get back on track toward a good credit score by being proactive.
Additional Resources:
- The Law Offices of Seth Kretzer: https://kretzerfirm.com/how-long-does-a-judgment-stay-on-your-credit-report/
- TDECU: https://www.tdecu.org/blog/how-long-does-a-judgement-stay-on-your-credit-report
- Experian: https://www.experian.com/blogs/ask-experian/how-long-does-a-judgment-stay-on-your-credit-report/
- Equifax: https://www.equifax.com/personal/education/credit/report/how-long-does-negative-info-stay-on-credit-report/
- TransUnion: https://www.transunion.com/credit-help/negative-information
Don’t let a judgment hold you back. Take action today to minimize its impact and build a brighter financial future.
What is a Judgment on a Credit Report?
A judgment on your credit report demonstrates that you had to be sued by a lender in order to get the money they loaned you back. Judgments let potential lenders know that loaning you money may be risky. Even after you reach a settlement with a creditor or reimburse them through a monthly payment plan, wage garnishment, tax return garnishment, etc. — what is called a satisfied judgment — the judgment will still remain on your credit report. You must concentrate on credit repair in order to refute a judgment on your credit report and be eligible for credit services going forward. On your credit report, it should be mentioned that a satisfied judgment is preferable to an unsatisfied judgment (i e. a judgment that has not been paid or settled).
The Fair Credit Reporting Act (FCRA)
To understand how long a judgment can stay on your credit report, it is necessary to know about the Fair Credit Reporting Act (FCRA). Passed in 1970, the FCRA is a federal law designed to help consumers understand the information collected and reported on by credit reporting agencies (e.g. Experian, TransUnion, and Equifax). It dictates rules around consumer debt and privacy, accuracy, and reporting. One of the rules established by the FCRA is how long bad debts like bankruptcy or other debt-related civil judgments can remain on your credit report. So how long does bad debt like a judgment stay on your credit report?
How Long Does a Judgement Stay On Your Credit Report
FAQ
Can judgments be removed from credit report?
Do Judgements stay on your credit forever?
Do Judgements go away?
When did judgments stop reporting on credit?
How long does a civil judgment stay on your credit report?
Both paid and unpaid civil judgments used to remain on your credit report for seven years from the filing date in most cases. By 2018, however, the three major credit bureaus, Equifax, Experian, and TransUnion, had removed all civil judgments from credit reports.
How long does debt stay on your credit report?
In general, most debt will fall off of your credit report after seven years, but some types of debt can stay for up to 10 years or even indefinitely. Certain types of debt or derogatory marks, such as tax liens and paid medical debt collections, will not typically show up on your credit report.
How long can a credit report stay on your credit report?
A credit reporting company generally can report most negative information for seven years. Information about a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Bankruptcies can stay on your report for up to ten years.
What happens if you get a judgment on your credit report?
It is important to note that if a debt gets to the point of a judgment, it typically means you have other negative marks on your credit report like late or missed payments, which will likely affect your credit. Prior to the policy change, here is what you previously had to do to remove a judgment from your credit report.