I need to buy a house can I settle a judgment on my credit report and whats the difference on my credit report can I also propose they take it off my report if they want me to pay?
2007-03-22 00:48:00 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
Won't come off your report; no matter what the conditions are, it will be reported as a delinquent judgement; if recorded at the county records there is no way to "remove"it; it'll just be marked paid. Settled means paid and that's the only thing that's going to count.
2007-03-22 00:53:23 · answer #1 · answered by wizjp 7 · 1⤊ 0⤋
If you settle, or pay in full...the negative information that you have compiled on your report will stay there for 7 years. Collection Agencies, or creditors, (depending on whats the status of your debt as of now), will NEVER remove anything from your credit report. If they forgive a decent portion of the debt, you will have to pay IRS tax for that. Depending on the amount of your debt, i think settling would not be a bad idea. However, "PAID IN FULL" looks better on your report than "SETTLMENT ACCEPTED ON THIS ACCOUNT." I settled my debt with creditors last year and now i dont owe anybody any money. The only negative thing is that i have to wait 7 years to get all those negative marks removed from my credit reports. ALSO, If they say, "ok we will take this off of your credit report" or anything else, ALWAYS get everything in writing.
2007-03-22 01:45:32 · answer #2 · answered by Irvin 2 · 0⤊ 0⤋
A "Settled Debt" or "Paid in Full Debt" is better than an "Un-Paid Debt" in any circumstances. However, Paid in Full will reflect better on your credit. Thats the good news. Now here's the bad news: If it is already a judgement that will remain on your credit for 10 years from the date it was ruled on by a judge. The creditor who sued you is not the one that reports the judgement to your credit, it is the courts. They will not remove it whether you pay it or settle it. They will just show it as satisfied on your credit. Either way, you should pay it and get it updated as paid to improve your credit. Anytime you have an "un-paid" collection, charge-off, or judgement account on your credit it really affects your debt to income ratio. Credit scoring views those debts as needing to be paid in full everymonth. So if you owe $5000.00 on a bad debt and you only make $2500.00 a month you will appear to any lender as unable to take on any new debt. They know that the 'Bad Debt Creditor" can as you for that money IN FULL at any time if not sue you for it. (which you are aware of already)
2007-03-22 05:29:01 · answer #3 · answered by Millionaire in training 4 · 0⤊ 0⤋
You can propose anything you like, but they won't take bad credit off your report just to get you to pay.
If you don't settle,, it will only prolong things and make your credit history look even worse.
2007-03-22 00:51:55 · answer #4 · answered by Jo Blo 6 · 1⤊ 0⤋
If you settle a credit debt (paying less than owed), that will reflect negatively on your credit report for the next 7 years. It will also lower your credit score. And, the different will be taxable to you on your income tax return!
Pay up!
2007-03-22 00:51:02 · answer #5 · answered by kja63 7 · 0⤊ 1⤋
If the collections corporation has stated the defaulted debt to the credit bureau, paying won't advance your score. the wear is finished and could proceed to be for the stability of the 7 year reporting era besides the fact that if paid, settled, or unpaid. settle for as low as you could. lenders watching your credit checklist will evaluate settle or paid especially plenty a similar on a defaulted debt. merely be certain to get any settlement settlement in writing formerly you pay. save that settlement alongside which includes your fee data continuously.. do not provide the collector direct get right of entry to on your financial employer account.
2016-11-27 21:49:32 · answer #6 · answered by ? 4 · 0⤊ 0⤋