How Long Will A Negative Mark Remain On Your Credit Report Part Two
In the first article in this set I spoke about how long different marks stay on your credit score. I mentioned that mistakes will be removed immediately, soft inquiries will have no effect, and hard inquiries can hang around on your credit report for two years. Late payments have the capacity to do way more damage.
Although a few creditors may opt to show you mercy and remove past credit problems if you pay your account immediately, late payments can have an effect on your credit score for seven years. Luckily, these negative marks are common and do less damage to your score than the rest of the marks I will go on to discuss.
Like a broken mirror with seven days of bad luck, a tax lien brings seven years of poor credit. When you don’t pay your income or property taxes when they were due, and the government comes in and claims ownership of your property, you’re dealing with a tax lien. Unlike creditors, no matter how fast you settle your tax lien, big brother is peeved that you made him go out of his way to take your property, and it will stay on your record for seven years.
Foreclosures are equally as damaging and they will be on your credit report for seven years. Foreclosures are looked at as one of the worst negative accounts that can appear on your credit report. In fact, if you do have a foreclosure on your credit history, good luck buying another home unless you are planning to pay for it all in cash.
It is not the good old days anymore, so don’t default on those student loans either. Before the administration of President W., student loans usually were forgiven if they were declared when someone filed for bankruptcy. Now things have changed, so it’s crucial to pay your student loan debts. After 270 days of nonpayment, defaulting occurs, and before the loan defaults, you can bet your life that you will be the unlucky recipient of a whole slew of late payment fees.
The last, and most serious negative mark that can go on your credit report is bankruptcy. Bankruptcy will stay on your record for ten years, and instead of having a creditor pull your report, you may as well call them up and say “I am fiscally irresponsible and will be that way for the next ten years.” Declaring bankruptcy can hinder your ability to get a new car, any type of new credit or a new place to live. So watch your credit report, or you might end up living with that rude mother in law I wrote about in article one.
Mallory Megan writes articles on commercial collection agencies.
Tags: business debt collection, commercial debt solution, consumer debt collection, Credit, credit card collection, credit collection, debt collection attorney, debt collection solutions, long island collection agencies, new york collection agency
One Comment
Here in the UK it stays on for 6 whole long years
It’s making iot really hard for anyone to get finance of anykind at the moment.