However unfair it might seem, a satisfied judgment will continue to harm your credit for quite a few years but there are some benefits to paying off a judgment. Be advised, an unpaid judgment will not only harm your credit, but there is also a good chance the judgment will be re-filed. On top of that, an unpaid judgment will accrue interest just like other debts. In some cases, the accrued interest can be in the double digits!
According to the Fair Credit Reporting Act, satisfied judgments will remain on the credit reports for 7 years from the judgment's date initially filed or when the statute of limitations expires. The statute of limitations also varies from one state to another. Most states do allow creditors to renew judgments but the requirements may vary. It's advised you contact an attorney to find out how your statute will apply to your judgment.
Even though a judgment will have a lesser impact on your credit as time goes by, you should be concerned when creditors can use judgments to collect the debt. There are quite a few states that will allow creditors to collect by garnishing your wages. Because states allow judgments to be renewed, your creditor will have quite a few years to collect on your debt. It's extremely advisable if you have a judgment, pay it off with the courts and be done with it. If you are still concerned about judgments and their impact on your credit, you should reach out and ask for professional help.
How Many Cards Do You Presently Have?
Consumers are all different and come in all shapes and sizes and that includes the number of card cards they have. The average American has 3 or 4 active credit cards but this number could be lower or higher depending on the individual's needs. How many credit cards do you presently have? Are you someone who applies for every special offer that shows up at your door for a new line of credit or are you conservative in your choices? There are so many factors involved but also consumers must take a closer look at their growing credit card collection and decide if they really need so many cards or should they unload a bunch of them.
If you are just starting off with credit cards, it's a good idea to stay with 2. You will probably need two to maintain your credit score but don't go crazy. You need to understand how credit cards work and the pitfalls you might fall into if you are not careful. It is a good idea to have one main credit card and another that serves as a backup. When looking around for credit cards, check out cards from different credit card networks in case you have a merchant you are presently working with who does not accept all credit cards, just selective ones.
Keep in mind, the fewer cards in your possession, will help you stay out of debt, especially if you are a spender and you do not pay off your balance every month. On the other hand, having several cards in your possession will help you receive many rewards and can even improve your credit score. If you use a little strategy, you could possibly improve your credit score with some of these cards.
How Can Credit Cards Improve My Rating?
There is a ratio known as Utilization Ratio which is calculated by the amount you are actively using in comparison to the credit amount that is available to you, which is in agreement to your credit card limits. This ratio can play a significant role in your credit score calculation. Even if you pay off your balance every month, the amount you will be charged will determine your credit utilization ratio.
How Do I Know What Utilization Ratio Is Best For Me?
By rule of thumb, your credit utilization ratio should be below 30% but lower is even better. The one aspect that affects your utilization the most is your overall balance as the percentage of the amount of credit that is available to you. If you want the highest scores, you should stay between 1% and 9%.
How Can I Know How Many Credit Cards I Will Need?
A certain number of credit cards can help you keep your low credit utilization ratio. One very simple formula that only takes a few steps will help you decide just how many cards you really need:
• Every month, go over your statements and add up your balances
Go over your statements from last year. Add up each month's statement balance for each card then get the average. If you want to maintain your utilization below 10%, the credit amount available to you should be around 10 times the amount of your average balance each month from all your cards.
• Compare your credit limits and your average balance
You should check your credit cards' limits then add them all up. When the credit limit falls below 10 times your average balance each month, you can open a new card to get the needed credit limit. Unfortunately, there is no way you can know what your credit limit will be when you apply for a new card. You will really have to go through a trial and error period to find out. Another avenue, you can request an increase in your credit limit on a particular card or cards.
Keep in mind, if you are a spender who does not pay off your balance each month just pay the minimum due, it's not going to help you improve your credit score or your utilization ratio. If you are in that habit, find out if you can get a debt consolidation and unload some of your cards and then concentrate on the balances from the other active cards. Check your spending habits and try to pay off the entire balance on each card every month.
Anyone with credit cards problems conveying a great deal of credit card debt. When you have gathered an excessive amount of debt on credit card, it may take years and a lot of penances pay for it. As you use credit cards, you should remember these 5 different ways to maintain a strategic distance from credit card debt:
Method1: Full Payments of Bills
Utilizing credit card to pay for planned things might be a helpful and safe approach to deal with your cash. You don't have to stress over losing cash that can't be supplanted and you do need to encounter the issue of composing on a check. Make sure that you pay off buys you make toward the month's end. On the off chance that you convey parity, don't broaden it out for over 3 months. You should know when your effortlessness period closes. In the event that you pony up all required funds, you don't bring about debts.
Method 2: Make Your Own Practical Budget
Knowing how a lot of cash that comes in and out is significant while dealing with your accounts. Useful spending plan resembles money related precious stone ball as you can discover. Your spending will demonstrate to you how a lot of cash accessible, when to hope to have more, when bills are expected, etc. It will likewise reveal to you how a lot of cash you've left over toward the month's end. Spending limit empowers you to design your buys as opposed to going after plastic on the off chance that you feel the motivation.
Method 3: Charge for particular goods
The brilliant standard isn't to utilize a credit card to buy things that won't exist when your bill arrives. You can utilize a platinum card or money to pay for motion picture tickets, eating out, and gas. You can spare your credit card for crisis circumstances. When you use a credit card for real costs that you won't probably satisfy inside the effortlessness time frame, incorporate reimbursement cost in your financial limit.
Method 4: Consider Fine Print
It is imperative to take a gander at the conditions and terms of the credit card offers dependably. Never expect that early on financing costs are perpetual. The offers that you get in the mail couldn't be credit's real terms. Much of the time, such offers depend on the most ideal situation. On the off chance that you don't have ideal credit, your terms may be extraordinary.
Method 5: Work upon Cool-Down Strategy
Other individuals solidify their credit cards in squares of ice, so they have to trust that the ice will soften before they can utilize the card. The thought is that in the event that you have to hang tight for a few hours before you could make a buy quick desire has sufficient energy to pass. At that point, you can smoothly evaluate whether the item merits putting your credit card. While solidifying card could be somewhat outrageous, you require some sort of chill off trigger. Take a stab at realizing your identity as far as cash. Others are increasingly inclined to motivation purchasing contrasted with others. In the event that you are one of them, consider keeping your credit card in a protected and safe spot once you go out on the town to shop so you aren't enticed to utilize it.
Yoel “Mo” Molina and I am a lifelong resident of Miami, Fl. I am a graduate of Miami Senior High, Class of 1992, Georgia Institute of Technology, B.S. 1997 and University of Maine School of Law, J.D. 2001. I have been practicing law in Miami Since 2001. I am a former training prosecutor in the Miami-Dade State Attorney’s Office. I have experience in jury trials, appeals, and administrative hearings. I have appeared before judges across the State. My experience ranges from civil litigation matters, collection matters, foreclosure, business and corporate, contracts, real estate, leases and employment matters.
"Mr. Molina has always been there for us with timely, reliable and competent advice. He is an important and valuable part of our team." Corporate Client Eric Delgado, President of American International Export, Inc., a worldwide importer and exporter of brand name appliance parts.
"Yoel has been responsive and attentive to our company’s best interests and needs. He has been a valuable resource to our company. Any company that enlists his services would be in good hands-- including our own clients.” Corporate Client Gibran Flynn - Co-Owner and Founder of Eleva Solutions, Inc., the South Florida leader of outsourced HR, Staffing, Training, and Loss Prevention.
"My name is Anastasia Yecke Gude and I am the owner of Healing Hands Therapeutic Massage LLC. In the process of my company’s growth and expansion, I suddenly found myself a few weeks ago in need of a 1099 contractor agreement, and I needed it ASAP. As in, the very next day! I contacted the Law Office of Yoel Molina and his assistant put me in touch with Mo. I sent him what I had drafted up and he replied within a few hours with suggested revisions and clarifications, as well as a few insights I had not even considered. I was thoroughly impressed by the quality of work he provided, especially considering the time crunch I put him in (sorry, Mo!). I definitely recommend his services to anyone in need of a good contract attorney, and I will be calling him again for future work…hopefully in less of a rush next time!"