Your credit score is probably something you never pay much attention to throughout life. However, once you rating begins to drop, this can have an adverse effect on your ability to borrow money. This is usually when you start to take notice.
So why might you find a Judgment On your Credit Report?
A county court judgment usually occurs when you owe money to one of your creditors and they sue you for failure to keep up with the monthly repayments. The first mistake that many of us make, is that you are aware that you are falling behind with payments, but fail to do anything about it. As your debt rises from additional monthly and late payment charges, things get more difficult. Then the collections telephone calls start. Eventually, you turn a blind eye and find yourself deeper in debt and unable to meet your level of repayments.
I'm not sure why. Is it fear, embarrassment or pride? However, we all have a tendency to try and sweep problems under the carpet. This, unfortunately, is when further complications occur. If you ever find yourself in a situation where you are unable to cope with the tide of mounting debts, i urge you, the first thing to do is swallow your pride or overcome your fear/embarrassment and approach your lender.
What does a Judgment on your Credit Report mean to you?
Once you have a judgment on your credit report, this will stay there for up to 7 years. Even if you clear the debt, this will still appear of your credit report as a satisfied judgment. This, of course, will sound as a warning to any potential lenders. You may well be considered a "high risk" for many years to come.
What Should I do next?
The first thing to do is ensure that the details held on your credit file are up to date and free from errors. You can order a free credit report once a year from the three credit report agencies. This is an opportunity for you to see how creditors view you. If you come across any errors or wish to dispute anything, you should immediately contact the credit reference agency. You will also find there are many ways in which to remove things such as judgments, late-pays and defaults.
