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I am trying to buy my first home and I see now that there is a judgement on my credit from a credit card back in 2004. The judgement is a recent thing, just within the last year. I didn't follow my credit and didn't know much about how this works until now, trying to buy a house. What if anything can I do? The judgement is for $2800.00 but, they are now saying that I owe $4500.00. Is there anything that I can do to fix this while stll buying my first home? :cry:
Hi c,
Judgment on your credit report means that your creditor has sued you, for not paying the debts you owed to him. Did you receive summons from the court? The best way to fix credit after a judgment, is to pay off the judgment amount. Your judgment amount has increased because of the added interest to it. You can negotiate with your creditor on the judgment amount. You should come to a pay for deletion agreement with your creditor, before making any payment.
Apart from paying off the judgment you can try the following tips to fix your credit, to increase your chances of qualifying for a home loan.
1) Make timely payment for all your credit card accounts.
2) Never keeping balances remaining on your credit cards, try to pay the full balance every month.
3) If you have any accounts that has passed to collections, you should negotiate for a settlement and pay them off.
4) Having a secured credit card account and making timely payments for it, may help to raise your score.