Credit Score and Judgments (2021) | Summary and Q&A

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March 23, 2021
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Consumer Warrior
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Credit Score and Judgments (2021)

TL;DR

Debt collection judgments no longer appear in the public records section of credit reports but may still impact your credit score if reported by the creditor.

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Key Insights

  • 🪘 Debt collection judgments no longer appear in the public records section of credit reports due to changes implemented in 2017.
  • ❓ Creditors can still choose to report judgments under regular collections accounts.
  • 🪈 Judgments are public documents and can be accessed through county recorders or government agencies.
  • 💯 It is important to address a debt collection judgment to protect your credit score and overall financial well-being.
  • 📁 Settlement, filing a motion to vacate, or resolving the judgment outright are potential actions to take.
  • 🥳 Potential lenders or other parties may still be able to access and consider the judgment when evaluating creditworthiness.
  • 💯 While the credit score may not be directly affected by the judgment, it can still impact loan applications or other types of lending.

Transcript

  • Hey everybody, this is John Skiba. And in today's video, we're going to talk about judgments, and specifically how a debt collection judgment is going to impact your credit score. But if this is your first time here to my YouTube channel, go ahead and click subscribe, check off on that little bell. That way you'll be notified each and every week ... Read More

Questions & Answers

Q: How have the rules regarding debt collection judgments and credit reporting changed since 2017?

In 2017, the three main credit reporting agencies stopped reporting judgments in the public records section of credit reports. This change was significant as it resulted in many people experiencing an increase in their credit scores.

Q: Will a debt collection judgment still impact my credit score if it's not listed in the public records section?

Yes, even though judgments no longer show up in the public records section, creditors can still report them under regular collections accounts. This means that the judgment can still have an impact on your credit score if it is within the reporting time limit.

Q: Are debt collection judgments accessible to the public?

Yes, judgments are public documents and can usually be accessed through county recorders or government agencies. This means that potential lenders or other parties may be able to see the judgment if they check these sources.

Q: How should I handle a debt collection judgment to protect my credit score?

It is crucial to address the judgment by either settling the debt, filing a motion to vacate it, or resolving it outright. By taking these steps, you can minimize the potential negative impact on your credit score and financial future.

Summary & Key Takeaways

  • Debt collection judgments no longer appear in the public records section of credit reports since 2017.

  • However, creditors can still choose to report the judgment under regular collections accounts.

  • It is important to address the judgment to avoid potential consequences when applying for loans or other types of lending.

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