How Is Your Credit Report Affected By Judgments?
There are primarily two types of credit scores. They are generic scores and custom scores. Custom scores are generated by individual lenders, who rely on credit reports and other information, such as account history, from their own reports. If your credit report shows a court judgment, then it affects your credit score.
A Credit Report is the information from your personal credit file. It offers you immediate access to your credit information in a safe and secure way. Information that appears in your report is gathered from many sources, such as your creditors, public record sources, collection agencies. Your credit report is a picture of how you and you alone, have paid back debt and met other financial obligations. There are many sections in your credit report like personal details such as name, age, date of birth, residential address, and marital status and so on. Then there is public information like whether you are in the electoral roll or not.
The next section shows your past credit history and how much debt you have outstanding. Lastly there is listed if you have any filing for bankruptcy and if there are any county court judgments against you.
A court judgment will certainly affect your credit worthiness especially if the judgment is pertaining to financial dealings. This brings the credit score down drastically. Terms like “never late” “always on time” reflect positively on your report. Besides Fico scoring system there is also another system called the vantage score. Borrowers with high FICO scores between 750 and 900 can expect lenders to offer lower interest rates and more loan options. Scores of 620 or lower usually place a borrower in the "subprime" category, and they can expect to be quoted significantly higher interest rates and may be offered fewer varieties of loans. A FICO score of about 500-520 is generally the minimum that will qualify for a mortgage. Below this it is bad credit. If you have low credit scores due to court cases and judgment then the best option is to make a down payment initially or show large cash reserves. Look for genuine lenders, because many frauds are on the look out for scapegoats. If a lender asks you to pay just for looking at your report, then you know he is not genuine. Even if the judgment has been in your favor still your rating score goes down.
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