If you have bad credit then you may already be aware of the ugly truth about negative activity and your credit report. If you’re trying to repair your credit you, may be wondering how long negative activity remains as a part of your credit history.
In most cases, negative activity stays on your credit history for seven years. Certain other negative marks may remain for up to ten years.
In this article, we’ve highlighted negative activity that is frequently reported to credit agencies and the amount of time they remain a part of your credit history.
Late and Missed Payments
There is a difference between late payments and missed payments and how they affect your credit report.
Legally, late payments cannot be considered missed until after 30 days. If the past due bill is paid within those 30 days, it is not reported to the credit bureaus even if the creditor has charged you a late fee.
Credit reporting agencies use certain credit card accounts and installment loans to observe your payment history over time. Since payment history accounts for 35% of your FICO credit score, it’s important to stay current on these accounts, which are called trade lines.
A past due amount on a trade line is called a delinquency and will stay on your credit report for seven years. A delinquency can cause a credit score to decrease by up to 130 points.
Failure to make mortgage payments often results in a foreclosure, or bank seizure of property. Foreclosures are reported to the credit bureaus and will remain on your credit report for seven years.
A completed Chapter 13 bankruptcy will remain on your credit history for seven years. However, a Chapter 7 bankruptcy will stay as a part of your credit history for ten years.
Generally, of thumb, negative information remains on your credit report for seven years. Late payments, delinquencies, foreclosures, collections, and certain judgments will stay on your credit report for seven years.
Although there are a few exceptions, like Chapter 7 bankruptcies and unpaid tax liens, it looks like seven years is the length of time negative information will affect your credit report.
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