How many points will a settled judgment raise my credit score?
I have had a small claims judgment on my file from 7/2009. I just paid it a week ago. When it gets updated to "paid" or "settled" how many points will that raise my score?!
It probably won’t right away. The damage to the score isn’t the judgment, but the fact that you were delinquent on an account which led to the judgment. As time goes by, the account will now start sliding into the past and be less of a negative each month.
April, 5th 2010 at 11:03 pm
It probably won’t or if it does every little. I’m assuming that the judgement was from something that you didn’t pay in the past. Creditors look at how often your late paying something.
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April, 5th 2010 at 11:47 pm
None
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April, 6th 2010 at 12:28 am
It will not change your score.
But, please remember, major lenders like FHA do not look at scores.
They look at credit reports in detail and make their own decisions.
They will see the item as cleared and act accordingly.
If you need credit in the future, ask the creditor to check your reports in detail and not just your score.
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April, 6th 2010 at 12:49 am
Once it’s a bad debt on your credit report, paying it off won’t really help a credit score. Sorry. At least you have one less creditor hounding you
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April, 6th 2010 at 1:08 am
None. Paying off the judgment won’t help you score at all. The damage is done and will remain for the balance of the reporting period, whether the judgment is paid or not.
However, creditors look at your whole credit report not just the score. Paid looks better than unpaid.
By the way, make sure that the judgment holder files the proper releases with the court. Otherwise, the judgment won’t show as paid.
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BD
April, 6th 2010 at 1:28 am
It probably won’t right away. The damage to the score isn’t the judgment, but the fact that you were delinquent on an account which led to the judgment. As time goes by, the account will now start sliding into the past and be less of a negative each month.
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April, 6th 2010 at 1:37 am
itll probably make it go down…..temporarily
a settled account is by nature an account that the company lossed money on. Any other company will look at that and think twice about extending credit because they may experience the same event in the future.
but settled is better than an existing outstanding debt so it will take time for the report score to improve.
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April, 6th 2010 at 1:52 am
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – credit-report-free.totalh.com
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