Friday, August 10, 2012

How Long Does Negative Information Stay On Your Credit







Negative items such as late payments, judgments, liens and charge-offs will haunt any credit record. For how long depends on the type of negative information and what the consumer does to remedy the situation.


Late Payments


Late payments will show up on an average credit report for two years, as long as the account is open. A credit report will reflect payment history for the most current two years. If the account is closed, that late-payment history will show up until the account is removed, up to seven years later. The older the late payments, the less they affect your credit score, but they will still be visible until on-time payments have been made for two years.


Judgments/Liens


Judgments and liens are a little different. These will stay on your report, if unpaid, until the statute of limitations runs out or seven years passes, whichever is longer.


Bankruptcy


Bankruptcies are reported for 10 years from the date the debt is discharged. There is nothing you can do to remove this information or shorten the time it takes to have it removed.


Other Negative Items


Other negative information, such as credit card charge-offs and collections, will be removed after seven years from the date of the last report. If these accounts remain unpaid, they can continue to be reported, which will keep them on your report indefinitely.


Considerations








Your credit report is like your motor vehicle record. Even if the negative information doesn't show up on your report, that doesn't mean it's not there. Negative information can be included in your credit report when you apply for a loan of more than $150,000 or a job that pays more than $75,000 annually, according to Brightscore.com, which advises consumers about managing credit.

Tags: credit report, seven years, your report, from date, more than, negative information