Law suit: Does this affect score ?

[e123]

Question. I know someone in a dispute with a landlord. My question is :  If a law suit is filed by the landlord will this drop credit score. I know  a judgement brings your score down. Will just the fact that a law suit is filed bring down a credit score ?.  Thanks for any responses.  

[Anonymous]

No.  Not unless there is a judgment.

[Anonymous]

I was sued in small claims court for $500. The judge ruled in there favor for $250. I then paid this person and satisfied the judgement within a few days. That was 3 years ago and it still hurts my score by 30-50 points. I contacted the credit agency and they said paying off the suit does not get rid of it. Just having one against me is enough. i do not think that just filing will mean anything. You need to loose to have your score affected.

[e123]

Thank you. That was my first thought.  

[e123]

Thank you. I agree I don't think just filing will hurt.

[VLGaffEsq]

Simply put, a lawsuit filed against you has NO effect on your credit or your FICO score; however, a judgment against you will significantly HURT you, and it will adversely affect you for several years, until it ages.  For a small amount of amount around $500, it highly advisably (to protect your credit score) to settle this matter outright before it has the power to become a major ding on your credit report!