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credit reports and judgments

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stephenk

Senior Member
What is the name of your state? California

How long does a satisfied judgment remain on a credit report? How does a satisfied judgment affect a person's credit rating? How many points does the judgment lower a person's credit rating?

Thanks.
 


JETX

Senior Member
Q1) "How long does a satisfied judgment remain on a credit report?"
A1) As for duration, a satisfied judgment is treated no differently than any other debt. It stays on the report for the full 7 years.

Q2) "How does a satisfied judgment affect a person's credit rating?"
A2) As long as the record shows that the judgement was satisfied, it should have no direct impact on the credit rating or score. One thing that I offer to my judgment creditors as an inducement to pay is that I will note the credit file as "paid as agreed", which is the best you can get. After all, my main goal is to GET paid... not necessarily to punish the debtor after the fact.

Q3) "How many points does the judgment lower a person's credit rating?"
A3) Though each CRA has their own FICO scoring criteria, I don't believe that a paid judgment has any negative affect. In fact, since a judgment is just a determination of a dispute, it really doesn't PROVE any negative value to the a creditor... in fact, I would say a PAID judgment could help a credit review since it shows that the debtor took care of his/her obligation once the dispute was settled.
 

stephenk

Senior Member
thanks steve. That is what i have been telling my client. the judgment was on a car accident and his insurance carrier paid the small claims judgment. I told him payment of a judgment regarding a dispute in an auto accident is much different than a judgment for not paying a credit card debt.

His opinion from his sis in law in the credit agency "business" was that the judgment stays on for 10 years and drops his rating by 100 points.
 
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