Custody lawsuits and your credit

My sister’s child custody case has shown up on her credit report. This won’t affect her credit, right?

(I told her that I didn’t think so, as there were no financial judgements against her as a result, nor any financial implications at all. But that I would check with the Fine Folks of the SDMB.)

Seeing as how matrimonial court battles have a tendancy to drive litigants into the poorhouse . . .

Question: “…shows up on her credit report…” - well, which company?

Usually, credit reporting agencies (CRAs) want judgements, liens and bankruptcy listings as part of the public record data…not court cases pending judgement.

Can you be more specific? How is the item listed? On what CRAs report?

An unpaid judgement or lien will be scored adversely, as will a bankruptcy.

Paid judgements and liens are more favorable. Discharged bankruptcy is more favorable (relative to an unpaid one, of course).

What Philster said. What are you talking about? Are you saying that being involved in a courtr case that has not been decided re judgements etc., is something that credit rating companies use to calculate your credit score?

I have to admit, that if that’s the case, I find that a little disturbing.

I’d really like to know the answer to my question if anyone knows.

This was Experian. I understand that it only shows up that there was a court case in which she was involved. No financial data is listed (which makes sense, since financial data was not the basis of the lawsuit. Permanent custody was.) I don’t believe the credit report lists specifically what the court case was about, just that there is one. She otherwise has no liens, bankruptcies, or any other judgements against her. (And, well, this judgement wasn’t against her, either. Just a mult-thousand dollar waste of time approaching harassment by her ex. But that’s for the pit… )

Also, this case was appealed to the State Court of Appeals. I believe this is the case that is showing up.

I have no idea as to how credit ratings are made, but I do receive from a credit reporting agency regular reports of what cases have been brought before the courts in our judicial disctrict.

I don’t know if the credit ratings of the parties listed on credit reporting agency’s list are affected.

Being advised of who is duking it out in court is a handy thing to know when it comes to deciding whether or not to do business with a person, for litigation tends to be very costly.

I spent some time studying the behavior of the FICO people with regards to different credit scoring algorithims.
A judgement against you seemed to hurt your score.
I never once saw this kind of lawsuit show up.
If I were her, I’d be very interested in her FICO score before and after this incident showed up. As an academic data point, if nothing else, it’d be revealing.

Well, I’m not sure at this point how she can find out what her FICO score was before the case showed up.

I have to talk to her and see what it actually says in regards to the case. But in no part in the process was there any judgement against her. It was the bastard - er, my very lovely nephew’s father - that appealed the case after he lost it initially.