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Credit Card Judgements


As the  unemployment rate rises and people get deeper into debt, the country is experiencing more credit card judgements than ever before.

If you fail to make adequate payments on your credit card balances, the credit card company may file a credit card lawsuit to collect its monies. Judgements in the creditor’s favor result in credit card judgements in which you are required to repay the creditor.

How Credit Card Judgements Can Affect You

If you fail to show up in court, you may be hit with what is called a default credit card judgment against you, possibly for thousands of dollars. The decision as to whether a judgement should be rendered against you will largely rest on whether the creditor has exhausted all other legitimate attempts to recover his funds.

Credit card judgements are important because of how they affect your credit score. A judgement against you will lower your credit score dramatically, sometimes making it almost impossible to obtain credit.

And even if you do manage to get credit, it will invariably be at much higher interest rates than before the judgement. That’s because whenever you apply for credit, the first thing that the potential creditor looks at is your credit score. And a credit card judgment against you is almost right up there with a bankruptcy in the eyes of the creditor.

How Secret Credit Card Judgements Can End Up On Your Credit Report

It is always a good thing to check your credit reports at least once on a yearly basis. One huge reason for doing so is to discover if any credit card judgements are on your record.

If you think that it would be impossible without your knowledge, you would be mistaken. How? In order for a judgement to be made against you, a process server has to serve you with papers requiring that you show up for court. But, in an effort to save time and trouble, some servers do not really show up to serve you with papers.

They just say that they do. Even though this is illegal, it occurs so often that there is a name for it – “sewer service.” So named because of th assumption that the server simply tossed the papers into the sewer to get rid of them. Why is this important to you?

Well, if this has happed to you and you fail to show up for a court date that you are completely unaware of – a default credit card judgement may be ruled against you. And – eventually, it will wind up on your credit report.

Correcting Information On Your Credit Report

If there is a judgement on your record that is incorrect, you can challenge it. And that is the reason why you should regularly request copies of your credit reports. Because if you don’t know that incorrect information is on your credit report, you can’t  challenge it.

Obviously, no one want to have credit card judgements on their record. In fact, if there is danger of this happening to you, and you simply cannot pay the debts that you owe, your best financial choice may very well be to file bankruptcy.


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