How Long Does Something Stay On Your Credit Report
It is not uncommon for people to wonder the answer to the question ‘how long does something stay on your credit report?’ All the more reason to ponder over this question is the fact that people like to feel rewarded if they have maintained an exemplary credit history, and they like to feel comforted if they have made financial mistakes that they do not wish to get affected by. Individuals who ask questions such as ‘how long does something stay on your credit report?’ and ‘how can one recover from negative marks on a credit report?’ are often people who have incidents such as bankruptcy, late payments and judgments on their credit report.
While postiive information can remain on your credit report for as long as you would like, luckily, negative information will only stay on your credit report for a set period of time. If you have been paying your mortgage or day-to-day bills before their due date, your credit report will benefit from a permanent boost. However, bankruptcies are normally visible on a credit report for a mere period of ten years, whereas late payments normally last for a period of seven years. Hence, it is important to first distinguish between positive and negative information when answering the question ‘how long does something stay on your credit report?’
In answering the question ‘how long does something stay on your credit report?’, it also helps to divide possible information that could be on your credit report into five broad categories. These include credit accounts, public records, collection accounts, bankruptcies and inquiries.
In the case of credit accounts, the answer to the question ‘how long does something stay on your credit report?’ is that information may remain on your report for as many as ten years from the date when activity was last recorded. If you agreed to pay by a certain date and failed to do so, information will remain on your record for seven years from the date on which you missed the initial payment. Collection accounts work in a similar way, with negative information being recorded for a period of 7 years from when the account first became due.
If there is a judgement that is made against you, it will remain on your credit history from the date it was filed, regardless of whether it was paid or not. Tax liens, on the other hand, last on one’s credit history as many as 7 years from the time the payment for it was released. If you fail to ever pay a tax lien, it will remain on your credit file forever. In case of bankruptcy, your credit rating agency is likely to take into account the kind of bankruptcy you had declared, and based on their determination, this information will either stay on your credit report for seven years or ten years. If there are inquiries against you, they need not appear on your credit history, and even if they do, they probably won’t affect your credit score.