Seeing negative information on your credit report is a real downer, especially if you’re trying to establish or rebuild good credit after bankruptcy. Fortunately, most negative entries on your credit report won’t stay there forever. Let’s explore how long negative entries remain on your credit report:
Late Payments
Late payments will generally remain on your account for 7 years. However, if the account on your credit report reflects current status and payment history, past late payments could remain on your credit report for up to 10 years. Revolving credit accounts (credit cards) and installment loans are more likely to include payment history as well as current status.
Not Paid As Agreed
“Not paid as agreed” notations on your credit report will generally remain there for 7 years after the date of last activity. Accounts are noted as “not paid as agreed” if you worked out a settlement with the lender that was not what you originally agreed to. For example, if you defaulted on your credit card account of $3,000, and then worked out a payment plan of $100 per month, that account might be noted as “not paid as agreed” instead of “current” or “paid as agreed.” It’s important to note that in this case the 7 year countdown will begin after your last payment to the lender.
Collection Accounts
If you have collection accounts listed on your credit report they will typically remain there for 7 years after the date that they first went into collections. Paying off a collection account will not automatically remove the entry from your credit report. However, after paying the account off you can request that the credit reporting agencies reflect the fact that your account is paid in full.
Bankruptcies
Depending on what type of bankruptcy you filed, bankruptcies remain on your credit report for 7 to 10 years.
- Chapter 7 Bankruptcy – 10 years from filing date.
- Chapter 11 Bankruptcy – 10 years from filing date.
- Chapter 13 Bankruptcy – 7 years from filing date if the case was discharged.
Public Records
Certain public records can impact your credit score, judgments and tax liens especially.
- Judgments, paid and unpaid, remain on your credit report for 7 years from the filing date.
- Paid tax liens remain on your credit report for 7 years after being paid.
- Unpaid tax liens remain on your credit report indefinitely unless you live in California or New York.
Fortunately, the impact of negative information has on your credit score lessens with time. The older your negative information the less it will damage your creditworthiness.
