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Credit Education > Credit Report > The Time it takes for Negative Information on your Credit Report to have its Effect

The Time it takes for Negative Information on your Credit Report to have its Effect

By Janet Lacey
Published: Friday, December 11th, 2009

Credit record repairing is neither easy nor instantaneous. It will require long years of constant credit record rebuilding to be able to achieve a good credit worthiness rating. The reason is simple a credit report and score are based on a historical account of the financial activities of an individual.

By implying the word history, it is automatic and safe to assume that a single financial activity both good and bad will appear in the report and will affect the score for a long time. To be exact, the historical accounting of Equifax, TransUnion and Experian dates every single detail of an individual’s financial activities for the past seven years. For a credit repair strategy to take its effect, it will need seven years of maintenance to fully affect the individual’s current credit score and report.

The credit bureaus can be appealed to delete a proven wrong accounting in their credit record. This will require a letter from the individual’s creditor that asks the credit bureau to enact on it through deletion. However, those documented credit accounts that are unapproved for deletion even if wrongly accounted will take seven years before it falls off the report and stop affecting the individual’s score. For example, if an individual has committed the negative trait of late payment habit the late payment will be accounted for the next seven years after payment. Unless a letter of deletion will be filed by the individual. But in the case that it is proven to be late without reasonable excuse then it will appear as a negative documented credit activity before the good plausible credit activities of the individual.

Among the possible negative information that can appear into an individual’s credit report, the one that will stay the longest is bankruptcy. It will take 10 years before a bankruptcy will fall off the individual’s credit record which also means that a bankruptcy declaration will continue to lower his or her score for a decade. The other negative information that can be accounted for will stay in the individual’s credit record for seven years. But there are cases that ordinary negative record takes more than seven years before it fall off the credit report.

The reason behind this is simple; the negative account is just transformed from old negative information to a new one.  An example of this is tax liens. Unpaid tax lien will appear on an individual’s credit record as an unpaid debt. After it is fully paid, it will appear on the credit report not as unpaid tax debt but as a tax lien. The duration between the full payment date and the unpaid date will get extra years for the negative information to fall off.

Other common negative information include court and default judgments, foreclosures, late payments, charge offs and collections. Court and default judgments are parts of the public records that also include tax liens and bankruptcies. Late payments will be listed based on the time duration that the payment has been late that is why late payments appear as 30 days late, 60 days late, 90 days late and 120+ days late. Charge offs are the defaulted credit accounts that the individual’s creditors reported as their losses. And lastly, collections are accounts that have been turned over to the collection agencies.

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