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Credit

By Ellen Coe

Mortgage and Lending with Wells Fargo Home Mortgage

September 11, 2007 06:26 AM

I have been asked on several occasions about credit issues on someone's credit report. I was asked again today about a judgement; how long does it stay on the credit report? What if it is my ex's responsibility, can I still get a loan?

Judgements and Bankruptcies stay on your credit report for 12 years; if they are both paid and cleared; they will stop effecting your credit score after 7 years.

If a judgement or any other debt is showing on your credit report and you are not responsible for the debt yes you can get a loan as long as you have the following: evidence that you are not responsible as in a release from the judgement or debt, or divorce papers showing that the ex is responsible. That is just a "let's get the deal done" not a "fix" on the credit report.

The judgement will keep coming up until it is taken care of. I recommend to anyone out there to submit evidence that the debt is not theirs to the credit bureaus. There are three bureaus; Equifax; Transunion and Experian; a letter to each bureau would be necessary. Sometimes a trip to the judge stating that you are not responsible for the debt is necessary to send along with the evidence, it depends on the situation.

In the long run; taking care of your credit is better than re-addressing it every-time you want to get a loan.

God Bless

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Joan Snodgrass

Midamerica Referral Network - Kimberling City, MO

Good solid advice Ellen. I have a son who declared bankruptcy after a job loss and I know how difficult it is in today's world to live without a credit card.

Sep 11, 2007 06:41 AM

Ellen Coe

Wells Fargo Home Mortgage - Sevierville, TN

Thank you Joan; if he is still having trouble getting credit, there is a way. He would need to start out with a secured credit card which can be obtained by a bank.

A secured credit card usually starts out as a savings account, used as a credit card. For example go to the bank ask for a secured credit card. If you want a $300 balance; then deposit $300 to the bank. The funds are locked in for anywhere between 6 months and a year, refundable to you if you show you are credit worthy. The card is a credit card; every month you would owe money depending on how much of the credit you used. For example you used $100 of the credit available to you and your payment (usally 5% or a minimum of $15) would be due to the bank, just like a real credit card.

This is good for people new to credit as well. I don't believe a college student should immediately go out and obtain debt without this back up; they may find they are not capable of handling credit and it would be a safer tool for them rather than the unlimited credit available to them now a days.

Sep 11, 2007 07:19 AM

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Ellen Coe

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