Pay judgment or wait 3 years?
- This topic has 1 reply, 2 voices, and was last updated 10 years, 5 months ago by
.
-
Posts
-
I have a $1,200 judgment against me, from a credit card debt I incurred when I was young. The debt is about 7 years old, and the judgment is from 4 years ago.
Should I pay it off or wait 3 years for it to fall off my file? Will my fico increase if I pay it? It’s pretty low, below 600…
Thank you in advance.
You should pay it
Paying the judgment won’t raise your Fico, but you need to pay it regardless…
To start with, Judgments stay on your report for 10 years, not 7. In addition, the person holding the judgment can renew it for additional 10 years, so your looking at 16 years of having it on your report.
Second, judgments can be used to garnish wages, attach bank accounts, and lien personal property. There are now collection agencies that specialize in buying up old judgments and collecting on them.
Lastly, even though paying of the judgment wont raise your score, lenders do check your report, and an unpaid judgment looks very bad when you apply for a car loan, credit card or even a job. Needless to say that you won’t be even considered for a mortgage without resolving this judgment (and all other derogatory items you may have on your file).
The longer you wait to pay off that judgment, the more interest it is accruing. Do yourself a favor and pay it today.
Good luck.
- You must be logged in to reply to this topic.