23 Mar How Judgments Affect Your Credit Score

If you are in the process of taking control of your credit report, start by assessing it in detail to determine what is reflected. Judgments have a big impact on your credit score, and our team know how to handle judgment removals from multiple credit bureaus to clear your name. Understanding exactly how judgments affect your credit score is the first step to improving your credit profile.

What is a Judgment?

A judgment is a court order that is issued against a debtor (in this case, you) by a creditor for outstanding debt. A judgment will be issued by a magistrate or a high court, and is also reported to all of South Africa’s major credit bureaus, including TransUnion, Experian, and Compuscan.

Check your credit score regularly – in some cases, consumers do not realise there is a judgment against them, as they may not have received a summons. This is why it is important to check your credit report regularly. Get a free online credit check now with Credit Boost, for the insight you need.

The Impact of a Judgment

Credit Score Drops: Your credit score will go down substantially as soon as a judgment is recorded on your credit profile. Keep in mind that legal options to challenge a default judgment are available if you believe it was issued incorrectly.

You are Flagged as High-Risk: Lending money or moving up instantly becomes much more difficult, since a judgment flags you as high-risk when lenders, landlords, or even employers check your credit profile during screening.

Listing Duration: A judgment against you will remain on your credit record for five years, according to the National Credit Act (NCA). To remove judgments successfully, you should work with an expert from our legal team. We can assist you in paying off or rescinding judgments and have helped many South African’s who require assistance with judgment removals.

How Judgments are Removed

Judgment removal is key to restoring your financial freedom, and there are legal routes available to have a judgment removed from your name, whether through rescission or a formal paid-up letter from your creditor and a request to the relevant credit bureaus. Whichever route you pursue, the correct legal steps must be followed, which is where Cape Town Legal Consultants can help.

Our team have the expertise and qualifications to help you get the best results possible, and we will guide you through each step of the process. We understand the grounds on which a judgment can be set aside, and have the skills to negotiate with creditors to improve your creditworthiness. CONTACT US today to get started.