Your credit report also has lots of information about your credit history and has records of all loans, credit cards, any past due payments, and collection accounts. This information is given by the lenders and is reflected on your file for some years before it fades out. But how long exactly? Here's a breakdown of how long different types of financial records typically remain on your credit report:
Negative Information
Late Payments - Late payments generally do not come off your credit report until 7 years from the initial time of missing the payment was due. This comprises those which are 30, 60, or 90 days past due. Yes, even when you pay that debt down to a zero balance, the record of the late payment will remain for the next 7 years.
Debt Settlements – Credit information kept in your credit report that results from paying off a debt for an amount lower than its contractually stated amount can remain in the credit report for 7 years based on the time that the particular amount of debt was initially due. Most debt settlements are considered unfavorable by any provider of credit.
Foreclosures – Foreclosure can remain in your credit report for up to seven years measured from the time the foreclosure process began or longer if there are still other outstanding debts associated with the house.
Voluntary Repossessions – Things like auto surrender where a person decides to give back the car because he cannot pay the bills anymore, can be noted for 7 years. That is why the information about the number of involuntary repossessions done directly by the lender is preserved for as long as 10 years.
Credit Histories – Chapter 13 bankruptcies may stay for 7 years after filing. Chapter 7 makes the credit report hold the bankruptcy record for the next 10 years from the time you filed it. Other information such as the type of bankruptcy and the date when filing the paperwork also pops up on reports.
Collections – This type of account is deleted after seven years from the time when it first became inaccurate. Thus, the paid or unpaid collections normally have a similar effect on your score.
Charge-Offs –Charge-off refers to a situation where a creditor formally writes off an amount of money as non-recoverable. Charge-offs, as a general rule, drop off your report 7 many years after your first payment becomes late, although unpaid charge-offs can stay on your report for over 7 years.
Judgments – It refers to a situation whereby you are taken to court to recover a certain debt and get a judgment. Judgments expire 7 years from the date on which the same was filed in court excluding cases where such judgments have been paid.
Positive Information
Loans & credit cards – Timely payments to credit report loans or credit cards help to boost your score until the particular account is closed or reported bad. Clients with closed accounts with a zero payment record maintain their accounts for an average of 10 years from the date of closure.
Public Records - Records of satisfaction of judgment or lien releases remain available for 7 years from the time the record was filed. Satisfied judgments and mortgage lien releases are beneficial for reports.
Non-Utilization - This kind of inquiry appears when you check your credit report and does not harm your score. Inquiries made while applying for new credit affect the scores slightly and drop after two years.
How to Get Errors Removed
If, therefore, you find some mistakes or outdated information in your credit report, it is your federal right to request a correction or deletion. Per legal requirements, the credit reporting agency must investigate all items in dispute, and so must the information provider.
To challenge an error on your credit report, write letters of dispute to the three major credit bureaus: Equifax, Experian, and Trans Union. Please beware that the information you are about to submit includes your identifying details, an explanation of the information that is inaccurate, and documentation evidence.
The financial record plays a crucial role when it comes to credit score and funding hence it’s advisable to monitor the reports often. Monitor what should no longer report on your credit report to ensure that your credit report depicts your credit competence over a given period. Being proactive helps to bring forward the long positive history you have and increase the chances of credit approval in the future.
So in summary:
In most cases, negative financial information usually disappears from your credit report after 7 years.
It is for the 7-10 years, that public records and account payment histories stay.
The fact is, you have the right to challenge and correct inaccurate or outdated information on your reports.
Staying abreast of the content of your credit history report is easier since it enables you to detect the errors thus, increasing the chances of pushing up your score using records of positive credit history.
Call (888) 803-7889 to know about your credit score now!
