Legal judgments against you—often the result of unpaid debts or lawsuits—can be reported on your credit report and significantly harm your credit score. If you fail to pay a debt, the creditor may take you to court, and if the court rules in favor of the creditor, a judgment will be issued against you. This judgment becomes public record and is reported to the credit bureaus, indicating a serious delinquency in your financial responsibilities. Judgments can remain on your credit report for several years and severely damage your creditworthiness. Settling debts before they reach this stage is crucial to avoiding the long-term negative impact on your credit.