There are several things that can affect your credit, one is the negative credit history which is usually caused by severe delinquent accounts like late payments, debt collections, charge-offs, repossession, foreclosure, judgments, tax liens, or bankruptcy on your credit reports. These things come from missing payments from your account. Credit bureaus track critical items to know if the borrower is reliable and responsible. On the other hand, negative items stay on the credit report for 7 years. If you think you have negative items on your credit report, there are ways to migrate their effect on the credit score, or even remove them from your credit report.
Learn more about the details on how long each negative item stays on your credit report and how would you remove negative items on your credit report.
There are different types of negative items that can be listed on your credit reports.
Filing for Bankruptcy means you declare you won’t be able to pay your debts. Either of the 2 types of bankruptcy it won’t make your bad credit reports disappear. It will only show that the affected account is included in a bankruptcy and will remain on your credit reports for seven years.
Hard inquiries will remain on your credit report for two years. It will show up when lenders check your credit for any loans you’ve applied such as car loans, mortgage loans, credit cards, and other application processes. To avoid having hard inquiries to occur you have to start doing research upfront and submitting loan applications in one company.
Having many months of late payments on any loans can be used against you as a foreclosure. Lenders can take ownership of your property to help you repay your debt. If this process starts the account is updated to show a foreclosure status. Like any other negative item, a foreclosure will remain on your credit report for seven years and can have a negative effect on your credit scores. Don’t spend too much that you cannot repay in the future. It will really affect your credit scores.
Unpaid student loans
This loan can stay forever in your credit reports. The reason for this is that the money you borrowed from this loan is from the government and it cannot be discharged through bankruptcy.
Not all creditors can give accurate information to credit bureaus which can affect your credit reports. It is much better to seek to advise professionals loke credit repair services. They can help check errors from your credit report and make sure to give accurate information to get a credit score you deserve.