nearly statued judgements

[meehan22]

So, the usual story. I fell into a financial meltdown back in 2006 at a young age and just didn't care and unfortunately not till a few years ago did i go back through and start to GW, PFD, etc and got pretty far. Paid off most of the judgements and such. So now we are getting close tot he 7 year statue limits. And depending on when it went to collections or judgement all of them will be falling off this year and next. There are 2 that are unpaid. 

In the mean time i've had a Orchard card for a First Premier Card for about a year (3 years ago), closed them down and got a Cap1 secured that i've had for a couple years. A few months ago i finally got a CLI to be partially secured. Limit is $451. I recently put another $100 deposit down on it. I also went ahead and applied for a BOA and US Bank Secured Cards so i can get another one under my belt. I have yet to hear back on thoes, possible denials because of the 2 open judgements. 

My score is 646 TU. My question is now this, I have 1 judgement unpaid that will fall of next year but I have one other that isunpaid and didn't report until 2008. Its for less than a thousand dollars. Both of them together is $1,500. And this is where it gets tricky, should i Pay these or wait it out? At the very least I think i should pay off the one that was entered in 2008. And if i Do that should i do a secure installment loan from my CU to pay it so I have more than a CC for history? I'd like to take care of the last one because i dont want to wait another 2 years to purchase a home/etc. I can wait another year because i have literally 15-20 other items that will be falling off than. 

How should i tackle these last 2 negative items on my credit report that will most impact my score. I've came a long ways from the under 400 score i had a few years ago. But a long way down from the nearly 800 credit score I had. 

[guiness56]

Depending on your state laws, even if the judgment is excluded due to age, the judgment creditor can renew it extending the SOL for payment another 10 - 20 years.

Also depending on your state, it may be possible to vacate the judgments once they are paid.

Even if you let them be excluded from your CR due to age, unpaid, when you apply for a mortgage you have to disclose all judgments, paid or not.

[RobertEG]

Credit report exclusion is but one means of shielding the presence of prior derogs from future creditors.  They cant get the info by a simple pull of your CR after expiration of the 7 year exclusion period.

However, judgments are public records.  Most judgments have their own period of enforceability of 10 years.

Parties can still do a public records search after CR exclusion, and of course, if already aware of the judgment prior to CR exclusion, are not precluded from continuing to use that knowledge as part of their decision making.

It is best to clear your history of unpaid delinquent debt, with or without a judgment.  A judgment makes it more likely to pop up.

[meehan22]

It's such I a small amount that I have no problems in paying them. Question comes up on which way is the best. I have the money but if I can pay it in a way to boost my score that's what I want to do

Would a secure loan from my local bank against my savings be a good idea? And if so how long of a term should I pay it for the most positive impact? I haven't had an installment loan, actually never. I had a very large line of credit that I purchased vehicles and such on than paid it off super quick.

[guiness56]

Paying a judgment won't help your score.  They are scored the same, as a judgment.

An installment loan, which is what it will be from your bank, plays a small role in FICO scoring.  However, it will help with credit mix.

[meehan22]

Absolutely won't help. Especially because its old.

How big of a loan should I take? I've read if you take higher loan and cc limits it shows creditors your responsible for large amounts. That's why I put another 100 deposit on my card and will continue to do every month unless told that doesn't really help.

The judgements are only 1500ish. If offered should I pay back in one year, two years? How large? If intake an extra grand or two wont affect me at all.

Just want to know how to get the best bang for my buck. The bank reports to all 3 agencies. If I am going to do a secure loan what should I be looking for for the biggest help in my score.

[RobertEG]

Securing new debt to pay old debt is a personal decision.  It will certainly cost $$ in interest on the loan.

Limiting the decision only to FICO impacts, securing a new installment to pay the old debt might assist in mix of credit, but will definately result in lowering your average age of accounts, and will most likely also require a hard pull to secure the loan.  It's not necessarily a FICO positive.