Lenders have the legal right to sue any borrower who has not paid or is unable to repay the loan amount. Being sued by a creditor is disastrous for a borrower and it affects his credit score making him ineligible to get a loan for many years. Leave aside the trauma and difficulties faced. The credit report judgments are valid for a long period of time; usually between 10 to 20 years. The judgment can be renewed before its expiration which means another 10 to 20 years of trouble. Creditors are using this method to pressurize borrowers so that they can retrieve the money owed. So, it is best to avoid getting into a situation of litigation.
However, if for any reason, you already have credit report judgments against you then you can make an attempt to remove it from your credit report so that loan eligibility prospects are not marred. But it can only happen if you have the money and willingness to pay to the creditor. Here is a step-by-step approach on removing credit court judgments from your credit report:
- First know how much you owe to the creditor. Make efforts to arrange at least half of the money. Once you have it, contact the creditor and explain the reason of non-payment and your willingness to pay every penny of the debt.
- Check to see if the creditor can provide you with a written agreement to remove the judgment from your credit report. Also tell them that you will pay the rest of amount at the earliest or in monthly installments.
- Get everything in writing and insist on a time frame within which it will be done. The creditor is only concerned about money and will have no problem helping you.
- Promise what you can deliver otherwise you will again be in the same trouble. Once you have paid all the money get a 'clearance' certificate from the creditor and request a removal of the credit report judgment. Keep all the documents with you in safe custody. You may need it in future.
- Get a copy of your credit report from one of the three credit reporting bureaus and verify whether the judgment has been removed or not.
The above tips will surely help you in removing credit report judgments from your credit report and consequently brighten your prospects of getting credit in future.