what if i had two judgements from credit card company that has been paid off for two yrs but still shows up on report? Will lenders take into consideration that it has been paid but left on report? What do you think about debt consolidation, is it better to settle or pay in full? thanks!!

GREAT QUESTION: If the debts have been paid and the judgements have been satisfied then you can have them removed if you have documentation. This should not affect your qualification on a loan as long as you can prove that the judgements are satisfied in full. It is always best to try and pay your debts off in full as the debtor can always report the the difference from a settlement even if agreed upon by both parties because the debt it still outstanding. One loop hole is if you get it in writing from the debtor that they will release all outstanding balance from being reported on the all three credit reports. This is not easy to do as they know this will never allow them to recoop that money again.

For your credit, its best to pay in full. When you settle, you are not paying the full balance. Exception is when you can get creditor to state paid in full/as agreed, even though you settled. They want your money, so if you request it to be shown paid in full, and state you will only pay them if shows paid as agreed, they might accept it. Judgements will stay on your report even when paid for 7 years. Clean up the derogatory, reduce any balance below 40% of the credit limit, and use your cards. 0 Balance is not going to improve your credit. Credit scores are based on the ability to use, manage and pay your debt.

Hi Zarahabu, the credit card judgements that have been paid off are well past the time frame for loan qualification. Your loan application would not be disqualified because they have not been removed from the credit report. We can accept sufficient documentation showing they were satisfied either in full or at a partial balance.