How Long Does a Judgment Stay on Your Credit Report?
Learn how civil judgments affect your credit report, their typical reporting duration, and the actions you can take to address their impact.
A civil judgment is a formal court order compelling an individual to fulfill a debt obligation. These judgments can stem from various non-criminal legal proceedings, such as unpaid bills, breaches of contract, or personal injury claims. While such rulings establish a legal requirement to pay, their presence on consumer credit reports has evolved significantly.
How Judgments Appear on Credit Reports
Historically, civil judgments were public record information that major credit reporting agencies, Experian, Equifax, and TransUnion, collected and included in consumer credit files. However, a significant change occurred in 2017 and 2018 when these three national credit bureaus ceased including civil judgments and tax liens in consumer credit histories.
As of these changes, civil judgments generally do not appear on standard credit reports issued by these major bureaus. The primary public record item still routinely collected and reported is bankruptcy. While judgments are no longer on credit reports, they remain a matter of public record. Lenders and other entities may still access this public information through other sources, which could influence their decisions regarding credit applications.
Standard Reporting Periods for Judgments
The question of how long a judgment stays on a credit report is largely moot for new judgments, as they typically do not appear. Historically, under the Fair Credit Reporting Act (FCRA), civil judgments could remain on a credit report for up to seven years from the date of entry.
Historically, even if a judgment was paid, it would remain on the credit report for the full reporting period, with its status updated to reflect payment. The FCRA established these time limits for various negative items to ensure adverse information does not indefinitely impact a consumer’s financial standing. While the credit reporting landscape for judgments has changed, the underlying legal enforceability of a judgment can vary by state, with some judgments enforceable for 10 years or longer and potentially renewable.
Removing a Judgment from Your Credit Report
Consumers should regularly obtain copies of their credit reports from each of the three major bureaus to ensure accuracy. These reports can be accessed for free once every 12 months from each agency through AnnualCreditReport.com. Checking credit reports helps identify any inaccuracies or outdated information that might affect credit standing.
If an individual discovers an old civil judgment, or any other inaccurate, incomplete, or obsolete information on their credit report, they have the right to dispute it with the credit bureaus. The dispute process typically involves gathering supporting documentation, such as court records showing a judgment was vacated or never filed. This documentation, along with a clear explanation of the inaccuracy, should be submitted directly to the credit bureau. The bureau is then required to investigate the dispute, usually within 30 days, and correct or remove the information if it is found to be inaccurate or unverifiable.
Satisfying a judgment is important for legal and financial reasons, even if it does not appear on a credit report. Ensuring the court record reflects that the judgment has been paid or satisfied can prevent further collection actions, such as wage garnishment or property liens. This action demonstrates fulfillment of the legal obligation. Consumers should monitor their credit reports for any errors and address them promptly.