Damaged Credit Can Last More Than 7 Years

In these trying times of reduced credit and liquidity, consumers are becoming increasingly aware of how important their credit reports are. Credit scores are often considered the gauge of your financial health – and this affects the willingness of financial institutions to provide you with a low rate loan. If you are fully invested in improving your credit score, you need to know that a negative item on your credit report can follow you around for more than seven years!

On average, negative credit information should automatically drop off your credit report after seven years time, and after you’ve payed off the debt. However, that is not always the case. Consumer reporting companies can a tap into:

• Chapter 7, 11, and 12 bankruptcies from 10 years after the filing date
• Unpaid judgments against a consumer for 10 years historically
• Accurate negative information for seven years
• Chapter 13 bankruptcies remain for seven years from the date discharged for a maximum of 10 years
• Tax liens remain for seven years from the date filed
• Unpaid tax liens will will remain indefinitely
• Collection account remain for seven years from the filing date
• One missed payment can stay on one’s credit account for seven years
• Inquiries remain on your credit report for two years but only affect your credit score for 12 months time
• Active positive information can remain on your credit report indefinitely

All the less than favorable marks are supposed to automatically drop off during the aforementioned time period, however only time will tell if that is accurate. If you have been working diligently for years to clean up your credit history and are still have bad credit problems, contacting the main credit bureaus may be able to clear up your credit history. You can also use our partner Go Look Online for credit repair services if you are unable to proceed on your own.

Have you checked your credit report recently? How long did negative credit items stay on your credit report?