Paid judgement and credit score
So you have a judgement and decided to pay it off. Good idea if you can afford it, because an unpaid judgement can stay on your credit report for a long time. But once you paid a judgment in full, you should expect the credit score to go up at least half way back where it was before, right? Wrong, your credit scores may stay about the same, may even go down initially. Rarely they will climb a bit higher. A lot depends on your overall credit history, scores before you got a judgement and how much the score dropped initially.
The bottom line is if you satisfied a judgement, it still remains on the credit report for 7 years. Do not expect a paid judgement increase your credit score in a month or two. Neither expect a substantial increase in several months. However with time, the effect of judgement lessens significantly, but a meaningful increase can often be seen only after 15 to 18 months or even much later.
If you are to look for a loan, have a letter of satisfaction in hand when applying, or be ready to furnish one when requested. Otherwise you will be denied. What affects credit score according to FICO.
Tue Mar 29, 2011 11:03PM | Copyright: www.bad-credit-advisor.com | More in Credit Score Help | Comments (0)
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