What to do with a closed judgment?

Four years ago I was stupid and uneducated about credit and sensible finance and got two credit cards, I was 19.Both of which I let slide into default.

A year after I ran up about 3k debt combined I began working in finance (ironically enough) and cleaned up my act. I made good and paid one card worth 2,300 off in full through weekly payments over seven months. The other card I assumed had been charged off since I had no heard from that particular bank for several months.

I discovered today through research on a database at work that that card had actually filed a judgment though I had not been notified. The judgment is noted as closed two years ago but not resolved for about 2k.

I am now in the process of attempting to seek federal financial aid for Graduate school---will this zombie judgment hurt my chances of getting a plus loan? Despite the fact that I have no other derogatory credit and have been paying my student loan every month without delinquency for two years? I also have no taken out any further form of credit like a car note or co-signed for anyone

Regarding this judgment should I:

A.) Let it sit as if not existing at all.

B.) Try to contact the bank and negotiate a settlement

C.) something else?

I am in WI.

Thank you.

let a sleeping dog lie!!!

Okay, at this point, it's already been 4 years. You will be better off credit wise by leaving it alone. It will roll off of your credit report 7 years after the last activity. So if you make a payment or something, you are adding 7 more years on your credit report.

At least that's the way they used to do it. Credit score rating changed earlier this year, I'm not fully up to date on the new methodology. The government should really consider rewarding people who do try to take care of their responsibilities and not add more time to a bad credit rating. It's a bit silly, when you think about it.

The only reason you'd want to negotiate something with the company is if they would remove the blemish from your credit report. And most companies won't do that because it is a valid debt and default.

It's sad to say just ignore the responsibility, but that's the fastest way to get it off of your credit score.