Sometimes even the most responsible individuals fall on tough times. Whether it's an oversight or a rough patch, negative credit events can follow you for a long time. The FICO algorithm, discussed in my last "Credit Tip Tuesday" post, does allow the impact of a negative event to decrease as time passes. The key is to not continue having them. With that being said a common question is, "how long does X stay on my credit report?" Different negative items, or black marks, stay on for different periods of time. Here are some examples:
Late Payments- If you are 30 or more days late on a payment it will show on your credit report for 7 years. Again, as you continue to make on-time payments going forward the impact on your FICO score diminishes. Some months you may have to be late on a payment, it's best if possible to be sure not to let it hit 30 days past due. If you pay on the 29th day after your due date it will not show as a late payment on your credit report.
Collections/Charge-offs- This can be a little trickier. The short answer is 7 1/2 years from the date you first fell behind with the original creditor. However, there have been cases where a collection agency nearing the deadline will sell the debt to another collection agency and it will be added to your report again. The burden is on the consumer to get this fixed.
Bankruptcy- Chapter 7 stays on for 10 years and Chapter 13 stays on for 7.
Foreclosure- Remains on your report for 7 years.
Tax Liens- Unpaid tax liens will remain on your report FOREVER. Once paid they stay on for an additional 7 years.
Civil Judgments- Civil court cases, child support complaints, etc. will stay with you for 7 years.
As you can see the majority of credit "black marks" stay with you for 7 years with a couple of exceptions. It's vital not to take on more debt than you can handle and best to live below your means. In the event something unforseen happens do your best to get on track as quickly as possible and continue building good credit going forward.
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