WHAT IS A JUDGMENT?

A court judgment is an order by a court given at the end of a trial, according to which the party that lost the case is required to pay off the debt owed to the credit grantor, plus additional fees, such as interest.

The judgment stated in the credit report is a warning that the consumer has a significantly high credit risk as a result of not being able to pay off the credit grantor or come to a common agreement without judicial proceedings. Judgments remain on credit reports as long as seven years and are derived by the credit agencies from public records.

TYPES OF JUDGMENTS

There are three main types of court judgments.

Unsatisfied judgments are considered to be the worst type as they are originally a public record of an unsatisfied debt. Next are satisfied judgments that are considered less harmful. They imply that the consumer succeeded in settling the judgment filed against him. Nonetheless, they are present on the credit report for as long as seven years.

Vacated judgments should be removed from the consumer’s credit report. Vacated judgments imply that a decision of a precedent judgment was reversed, normally as an aftermath of a successful claim. Hence, it is lawfully cleared, just as though there was never a judgment.

The last type of judgment is the re-filed judgment. Normally, a judgment stays on a credit report for seven years. This type of judgment is the one that is re-filed by organizations again after seven years if unsatisfied. That way it remains on the credit report for a longer period of time, depending on the state where it was filed.