How Long Do Negatives Stay on Your Credit Report?

Everyone is always looking for the best way to improve their credit score but sometimes negative items are included in your credit report, and you should be aware of how long they will remain there. Your credit score is highly impacted with every negative mark that shows up. How you pay your bills is extremely important for all financial entities, services, and companies you work with. It’s important to understand that all information, both negative and positive, is reported by your creditors, banks, and lenders to the three major credit reporting agencies nationwide, and is included in public record information. They report the information and submit it to your credit report. That is the reason you should frequently pull a copy to make sure all information and items are correctly detailed, and your personal financial history is accurate. In this article, you will learn about some of the common negative items that may appear in your financial history and how long negatives stay on your credit report. Charge-Offs Every time your payment is late by more than four months, lenders, financial institutions, creditors, or banks can decide if it is a lost cause to get payment and can mark you as a charge-off. This becomes a negative item on your credit report, which can remain there for seven years (after 180 days from the day the first payment was delayed). Even if you pay this debt off, the negative mark still will be on your credit report. Late Payments Making sure you pay your debts on time is the best way to keep your credit score clear of negatives. Paying a debt more than 30 days late, your creditor or lender will likely report it to the credit bureaus, and it will take about seven years from the day of the late payment to get it removed from your credit report. Being delayed with payments for 90 days or more will have a higher negative impact to your report than late payments of 30 or 60 days, but the sooner you pay, the less your credit score will be affected, and you will prevent seven years of negatives. Bankruptcy The type of bankruptcy, the chapter, you filed will influence the amount of time bankruptcy will remain on your credit report. Seven years are equal to a discharged chapter 13 bankruptcy since you had to repay some of the debt you owed. The bankruptcy may show up for ten years or more for chapter 7 or 11 since debts are not repaid with these chapters Collections Collections are another type of negative item that refer to debts you haven't paid on time and will remain on your credit report for seven years and 180 days from the date of the first late payment. Despite paying an account that has gone to collections, it will reduce your credit score and any other accounts that you leave unpaid. It might remain on your credit report unless you contact your creditor to remove it. Usually, credit repair agencies or companies such as DeletionExpert. com are a better option for getting away from negative items faster and efficiently. Inquiries Credit inquiries are a type of negative mark that aren’t as damaging as other items to your credit score. When your current creditors review your account to check your creditworthiness and to make sure you are eligible for a better interest rate or higher credit limit, this a common example of a soft inquiry. When you apply for a credit card, a car loan, or any new credit account, this means a hard inquiry will occur. It will damage your credit score for at least one year. Generally, inquiry's effects are minimal though it may stay on your credit report for two years. Foreclosure Seven years or more from the date you file is the time stipulated for a foreclosure to remain on your credit report after foreclosing your home. Short sales are also included in this timeline which translates into a negative mark on your report and will make a bit difficult for you to purchase another house for at least the time specified. Tax Liens Missing your tax payments means you will have a tax lien on your credit report as a negative item that will stay on your report after the IRS fill it for almost seven years. All though you pay off your taxes, it will be detailed on your report unless you try to contact the IRS to check if you qualify for withdrawal of your tax lien. Other negative items can be student loans default, delinquency information, lawsuits, or judgments. The best option is always preventing negatives by paying tax liens and any other debts on time. If you need to get a mortgage or loan soon and your previous tax liens are affecting your credit report, and thus your opportunity of getting the loan you should, contact a credit repair company to get all of your negatives removed. It seems that credit reports measure our lives, and for most of your negative marks, the lucky number is seven based on the Fair Credit Reporting Act, which is the federal law that decides how long negative information stays on your credit report. Any error in your financial life can be reflected in your credit report and impact your creditworthiness by giving you an unfair negotiation position in terms of credit for at least the next seven years. The great news is that there is always a solution, and you may be able to minimize or even avoid the amount of time negative items remain on your report by hiring a credit repair company such as DeletionExpert.com . They have a qualified team to help you get items removed in a few days in order to start making any big purchases that require a good credit score.

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