Negative information found on your credit report can cause you consternation as creditors may use that information to deny you credit, offer less favorable loan terms and in some cases cost you a new job. A paid or settled judgment does not have to stay on your credit report forever. You have three options when it comes to removing this information: time, an appeal to credit bureau or legal assistance.
Time
Eventually, a paid judgment will disappear from your credit report. Do nothing, and over a period of months or years whatever dispute you had with a creditor will no longer appear, including for credit card default, late payments on your mortgage or some other debt. Equifax, Experian and TransUnion are the three credit reporting bureaus who issue consumer credit reports; each company may handle removal of paid judgments differently. Only choose this option if you aren't concerned about repercussions of negative information on your report.
Appeal
You can obtain free copies of your credit report from AnnualCreditReport.com. Optionally, you can pay a small fee to get your credit score from them as well. Only this website is authorized by the Federal Trade Commission (FTC) to supply one free copy of your credit report annually for free from the three reporting companies upon your demand.
If a paid judgment is appearing on one or more credit reports, then you need to contact each bureau separately to ask to have negative information removed. Visit each company's website to learn what their requirements are to have that information expunged. According to the FTC, you should contact each credit bureau in writing, outlining your issue. The bureau has 30 days to respond unless they consider your request to be frivolous--in that case your demand will be ignored. Visit the FTC site to learn what your legal rights are; review the respective credit bureau appeal procedures and respond accordingly.
Legal
If a paid judgment remains on your credit report after you've filed appeals and waited for a response or if that response doesn't satisfy your demand, then it may be time to seek legal assistance to help remove a paid judgment. Visit the American Bar Association website to find a lawyer in your area. Narrow that search by looking for lawyers specializing in consumer law. Contact an attorney for consultation; your first visit is usually free.
Tips
Doing nothing, of course, may keep bad information on your credit report for many years. Appeal directly to the credit bureaus to see if a paid judgment can be removed. In some cases that judgment may stay on your report whether it is settled or not. Find out from your attorney what your rights are under state law. Be wary of using the services of companies who promise consumers help for a fee. Many schemes are scams and should be avoided.
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