Credit Card Judgements – Not A Credit Report Favorite
Don’t let credit card judgements ruin your credit history. These are by far one of the worse things to have on your credit report. It says to all potential creditors that you are irresponsible and incapable of paying your debts. Unfortunately, many times these judgments are on your credit report for no reason of your own, but they are considered very harmful to your credit history. This is an example of why you should check your credit report at least once a year. This type of credit mishap can greatly affect your ability to establish credit in the future.
This Could Have Been Avoided
You receive a credit card in the mail with a credit card limit of $1000. Over time, you manage to max out the credit card, but you are making the required monthly payment. However, at some point you discontinue payments and fail to inform your creditor. Your creditor tries to correspond with you about payment, but exhausts all avenues and finally gives up. As a result, your creditor summons you, sues you and wins. Credit card judgements are hard to explain to future creditors. You should have handled this situation with your current creditor before it got to this point.
All of this could have been avoided if you had just discussed your financial situation with your creditor. Because you did not communicate with your credit card provider and explain your financial difficulties, your creditor only had one option. In the end, you’ll have a terrible mark on your credit report that will negatively affect any future attempt of getting credit.
It Can Still Be Fixed
Credit card judgements are a terrible thing to have on your credit report. However, with a little hard work, they can be removed. You must contact your creditor the moment you know about the judgement against you. Sadly enough, many people don’t make this discovery until they get a copy of their credit reports. Make arrangements with your creditor to pay your debt over time, or work out a payment plan with them to repay it.
Once the debt has been paid and the court has been informed, petition your creditor to have the judgement removed from your credit report. You do not want to have his scar on your credit history for 10 years. Unless it is removed, you will not be able to buy a house, car or any other item that requires credit.
Most creditors will remove credit card judgements once the debt has been paid. However, if your creditor refuses to do so, you do have another simple option. Open a secured credit card account. As a result of the negative impact that a judgement will have on your credit history, you must show future creditors that you can be a responsible debtor after the time that you were served with the judgement. Future creditors must be convinced that you have the capability of restoring your good credit.
You do not want to have a credit card judgement on your credit report. It is a mistake that will remain with you for the next 10 years. Communicate with your creditors and don‘t let your credit situation get out of hand. Don’t let your creditors muddy your credit history with damaging credit card judgements.
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