There are several items in your credit report that can mean the difference between getting a loan, mortgage or credit card and being denied. Avoid these type of items if at all possible:

Bankruptcy - Legally removing your responsibility for some or all of your debt reflects poor management skills. Credit reports will include all accounts that were affected by bankruptcy and remain on your report for 7 to 10 years.

Judgments - Creditors may take you to court and sue for a debt. If they win, the record will remain on your report for 7 years from the date of filing, even after you have satisfied the judgement.

Tax Liens - When the government seizes your property for non-payment of taxes and auctions if off, the unpaid tax lien will remain in your record for 15 years. If the lien is paid it will remain for 10 years.

Foreclosures - When you default on your mortgage, your lender my recover the amount by repossessing your home and putting it up for auction also known as ‘foreclosure’ and will remain on your report for 7 years.

Charge-offs- Creditor may deem an account uncollectible after six missed payments. The account will be listed as a ‘charge-off’ or ‘written off and uncollectible’ and will remain on your report for 7 years.

Collections - After an account is posted as a ‘charge-off’ the creditor may hire a third party debt collector to collect the unpaid amount due. Your credit report may or may not be updated by the debt collector or the original creditor to reflect the current collection status.

Posted in Credit Tips

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