Satisfied Judgments & Credit Score Effect

[Anonymous]

I have a judgment on my credit report from 2010 (Citibank credit card). It's the first entry on my credit report and, believe me, it's the most hideous thing I've ever seen.

I am in the process of "settling" that account at about 40% off the total due. It will be satisfied in about 60 days, if not sooner. Beneath its entry, it says that it will stay on my credit report until 2017.

A few questions:

• Will my credit score improve once I satisfy this judgment? Do you think it would be a major bump up, or negligible?
• Will the judgment indeed stay on my credit report for the next 7 years, regardless of if I paid it off or not?
• If I "settle" this account now, do I have the option to pay the difference in the balance and change my credit report entry to "Paid in Full"? Or is this a one-time decision?
• Do I have any ability to have the judgment removed from my credit report in the hopes that it will improve my score (i.e., attorney, GW letter, etc.)? What tactics would you recommend?

I appreciate your help as I navigate murky waters.

[GregB]

Settling it will not help your score at all.

Paying it in full will not help your score at all but will look better to someone that is manually reviewing your report.

It will stay for 7-7.5 years but will continue to damage your credit less. If it is unpaid certain creditors will not loan to you at all.

If you want to improve your credit the best thing would be a Pay for Delete. You will have to ask them if they will do that and if you will have to pay them more. Paying 40% saves you money. Paying more, even 100%, will help your score. They may not be willing to delete, regardless.

I will defer to others about the best way to accomplish a PFD.

[Anonymous]

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@GregB wrote:

Settling it will not help your score at all.

Paying it in full will not help your score at all but will look better to someone that is manually reviewing your report.

It will stay for 7-7.5 years but will continue to damage your credit less. If it is unpaid certain creditors will not loan to you at all.

If you want to improve your credit the best thing would be a Pay for Delete. You will have to ask them if they will do that and if you will have to pay them more. Paying 40% saves you money. Paying more, even 100%, will help your score. They may not be willing to delete, regardless.

I will defer to others about the best way to accomplish a PFD.

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The tradeline reflecting the judgment itself will stay for only 7 years.  The tradeline reflecting the debt with all the lates and possibly chargeoff can stay for up to 7.5.

[Booner72]

I feel your judgment pain!  We have one from medical bills - all paid and judgment satisfied.  I have the collections AND the judgment.  Paying all did nothing for my scores.  The irony is that the medical bills are mostly my husband's.  When we paid the judgment I disputed to have it reflect as "satisfied."  They DELETED the judgment from my husbands reports but not mine!  GGRRR!!!

You will have to work with the judgment creditor to get them to "vacate" the judgment in order to get it off your reports - though i know someone here who is making the last payment and then the other party will move to have it vacated (at that person's expense) but it sounds like a good deal to me.  Maybe if you agree to PIF they will agree to vacate.  I tried to settle for less than owed w/ the judgment but they refused.  They wanted all the money.  Good Luck!!