How Long Will Bad Information Stay On Credit Reports
If you are in debt odds are that you have missed some payments or made late payments, and this is going to be reported to credit agencies. This in turn will hurt your credit score.
Negative information is generally removed seven years from the initial missed payment that led to the delinquency. So if you missed payments for six months…starting on June 1….the negative information would remain seven years from June 1.
If you have to declare bankruptcy one thing that you should keep in mind is that the negative information will remain on your credit report for much longer.
Chapter 7, 11, and 12 bankruptcies may remain on your credit report for up to 10 years. Keep that in mind when considering bankruptcy. It does not wipe out all of your debts, and it is a major ding on your credit report that stays there for a significant portion of your lifetime.
A paid tax lien may also remain on your credit for up to seven years.
You can dispute items on your credit report that are incorrect, but if the information really is correct, then the item will remain for all of that time.
So it is in your best interest to make all of your payments on time. If you have a financial crisis you may be able to negotiate this with the company that you owe money to.
One missed payment can negatively affect your credit report for a long, long time to come.