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Can a judgment from an auto accident appear on my credit report?

Can a judgment from an auto accident appear on my credit report?

Full question:

If I have a judgement rendered against me in an auto accident that is fully covered by my auto liability insurance policy, can this judgement still appear on my credit report? I have tried to find a definitive answer in the Fair Credit Reporting Act, but it appears to be silent on this issue.

Category: Judgments
Date: 04/07/2025
State: California

Answer:

A judgment from a personal injury case, even if paid by your insurance, can still show up on your credit report. Credit bureaus check the Judgment Roll for unpaid judgments, which are public records. Since the insurance company is not a party to the lawsuit, they will see your name on the Judgment Roll.

If the judgment is paid, it generally should not negatively impact your credit. Under the Fair Credit Reporting Act, a judgment can remain on your credit report for seven years or as long as allowed by state law, whichever is longer. In California, for example, judgments are enforceable for ten years and can be renewed for another ten years. Renewals can occur every five years, adding accrued interest to the principal amount. However, credit reporting agencies typically remove entries after seven years, regardless of state laws.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is the Fair Credit Reporting Act for car insurance?

The Fair Credit Reporting Act (FCRA) regulates how consumer information, including credit reports, can be collected and used. For car insurance, it affects how insurers can access your credit history to determine premiums. Insurers must inform you if they use your credit report in their decision-making. If you believe your credit report is inaccurate, you have the right to dispute it and seek corrections. The FCRA aims to ensure fairness and accuracy in reporting, protecting consumers from potential misuse of their credit information. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Does a stipulated judgment go on your credit report?

Yes, a stipulated judgment can appear on your credit report. A stipulated judgment is an agreement between parties that is approved by a court, and it becomes a public record. Credit bureaus can access these records, and they may report them on your credit history. If the judgment is paid, it generally should not negatively impact your credit score, but it can still be visible to creditors for up to seven years under the Fair Credit Reporting Act. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Can judgments be removed from a credit report?

Judgments can be removed from a credit report under certain circumstances. If the judgment is paid, you can request that the credit bureaus update your report to reflect this. Additionally, if the judgment is found to be inaccurate or if it has exceeded the reporting period of seven years, you can dispute it with the credit bureaus for removal. However, unpaid judgments typically remain on your report for the full reporting period. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

How long will a judgment remain on a credit profile?

A judgment can remain on your credit profile for up to seven years from the date it was entered. This is in accordance with the Fair Credit Reporting Act. However, some states have laws that allow judgments to be enforceable for longer periods. For example, in California, judgments can be renewed every five years, extending their enforceability. Even if a judgment is paid, it may still be visible on your credit report for the full seven years. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

How do I clear my judgment?

To clear a judgment, you typically need to pay the amount owed. Once paid, you can request the court to issue a satisfaction of judgment, which indicates that the debt has been settled. You should also notify the credit bureaus to update your credit report. If the judgment is incorrect or outdated, you can dispute it directly with the credit reporting agencies. Providing documentation such as proof of payment can help expedite the process. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

How to get a judgment removed from a credit report?

To remove a judgment from your credit report, first ensure it is paid. Once settled, obtain a satisfaction of judgment from the court. Next, dispute the entry with the credit bureaus, providing evidence of payment. If the judgment is inaccurate or outdated, you may also request its removal based on those grounds. Keep in mind that unpaid judgments typically remain on your report for seven years, so timely payment is crucial for clearing your credit history. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*