Credit Report Judgments Kill Credit Scores

If a debt remains unsettled for too long you risk the creditor taking you to court to get a credit judgment. Credit judgments are a court order demanding payment on a contract or obligation. You can say it is the “ultimate validation” of a debt as a judge has usually reviewed documentation and ruled that the debt is in fact valid.

Having credit judgments on your credit record can lower your credit worthiness and scores significantly. One of the other major drawbacks of having credit judgments is it can be nearly impossible to get extensions of credit with unpaid credit judgments on your credit reports especially a mortgage for a home since a credit judgment can attach itself to your real property.