Should I pay off the judgment

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Paige
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Subject: Should I pay off the judgment

Thu Jun 03, 2010 5:22 am

I have not had a credit card or any outstanding accounts for several years so a few weeks ago I applied for a credit card and was rejected by my bank.

I then got my credit score - 746 highest, and 687 lowest with an average of just over 700 between the 3. I do have one outstanding judgment on my record from 6/12/2003. It is my understanding that the judgment will fall off after 7 years which would be just a few days. So should I pay off the judgment , which I can easily afford to do. Or should I simply wait one more month?
Additionally, what would be the best way to go about reestablishing some credit? I was thinking a secured credit card as long as I make sure the bank sponsoring it will report to all 3 credit bureaus and not flag the account as secured.

Aaron

Joined: 08 Feb 2010
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Posts: 2675

48566 Magic Points

Subject: pay off judgment

Thu Jun 03, 2010 9:30 am

Hi Paige,

Judgments can be renewed before the expiration, and can be renewed for several times. Though only one month is left, the creditor or collection agency may renew the judgment. Thus, as you have the money, you should pay it off.

For reestablishing credit, you can definitely take a secured credit card. Before taking the card check if the company reports to all the three credit bureaus. After getting the secured credit card, start making small purchases with it. Then make on time payments on the card. This will help you in establishing a good credit history. After some time you can request the creditor to change this into an unsecured one.

Thanks,

Aaron
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