How Can Public Records Impact Your Credit Score?

How Can Public Records Impact Your Credit Score?
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Benjamin Beckwith
By: Benjamin Beckwith
Posted: December 17, 2013
Experts share their tips and advice daily on BadCredit.org, helping subprime consumers navigate the world of personal finance.

Your credit report is extremely important to understand how to manage your finances efficiently.

If there are public records on your credit report, then this is going to leave a negative impact on your credit score. This may remain on your credit report for seven years or more.

On the other hand, judgment is actually a formal decision that is provided by the court. Once the court submits a judgment, it will be hard to come out of credit card debt without paying them off.

A judgment will have an impact on your credit score until it remains to be a part of your credit profile.

After the credit bureaus remove the judgment from your credit report, it will not be an important factor in your credit score.

Public records:

A public record is said to be a legal document that is issued by the federal, state or county government and is visible to the public. Some examples of public records consist of bankruptcies, foreclosures, court judgments, wage garnishment, past due child support and tax liens.

All of these will leave a negative impact on your credit score. Even if you made a payment, a public record on your credit report will affect your credit score.

Usually this will stay on your credit report for seven years. However, bankruptcies can stay on your credit report for at least 10 years.

“An unpaid tax lien will stay

on your credit report forever.”

A credit report will consist of a section that lists all of the public records that have been filed against a person.

According to myFico, your FICO score will range between 300 and 850. Having a public record on your credit report will leave a negative impact on your credit score. According to Bankrate, bankruptcy may drop a FICO score by 240 points.

Judgment:

A judgment is said to be a decision that is made by the court for the debts you will have to repay to your creditors. The judgment will remain on your credit report for seven to 10 years from the date it was filed, even if you repay it.

Judgment will have the strongest influence on your credit report during the first two years when they are reported. With judgments on your credit report, you will not be able to take out any kind of loan without a significant down payment, high interest rates and fees.

After a creditor gets a judgment, he or she can attach bank accounts and file liens on your property, including your house, car, land and garnish wages.

Nearly 35 percent of your credit score will be affected by your payment record. Making late payments and facing bankruptcies, judgments and collections are some factors that will drop your score.

Thus, the bigger the judgment may be, the more your credit score will reduce. You should try to avoid judgments because this will leave a negative impact on your credit score for a long period of time.

If you have credit card debt, then you should try to pay it off soon. You need to keep in mind both public records and judgment will hurt your credit score.

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