Negative Credit History Timeline
If you have seen (or heard) the recent commercials about getting a free credit report, then you know it's important to have good credit and to monitor your credit line. This is the only permanent record that you need ever be worried about. Having a negative credit report can affect your borrowing ability, your interest rates, and even your employment.
The good news is that if you have negative credit, all is not lost. This record is not really permanent. Most of the bad information will be removed from your credit history after seven years from the last infractions.
Even though financial mistakes that damage your credit report can be fixed, it will require seven years. In order to avoid waiting seven years to have better credit, you need to take good care of your credit history now.
Late payments on any loans or rotating credit will be a negative mark on your credit history. Make a point to pay your debts on time. If that is a problem for you because of organization then pay your bills early. Before you go to talk to a lender you want to have at least a year's worth of on time payments so they can see the new trend in your finances.
There are times when you get behind on the payments and work out a payoff arrangement with credit card companies or store cards. This is a smart thing for you to do in the long run (but only if you cut up the cards and don't get any more credit lines), but it could be a negative strain on your credit history in the short run. Settlements of any kind will put a mark on your credit history.
Filing for bankruptcy causes serious negative repercussions to your credit history. Doing so will remain a part of your credit history for more than the standard seven years.
When lenders are trying to decide whether or not you can be trusted to pay back the money you wish to borrow, they will judge you by your credit history. Bankruptcies filed under chapter 13 stay on your credit history for seven years, much like other negative information. If you file for chapter 7 bankruptcy and thus do not have to pay back debts you have racked up, that information will remain a part of your credit history for ten years.
Loans are often offered to people with a negative credit history at interest rates three or four percent higher than normal. The financial decisions you make now can potentially affect you for the next seven or even ten years, so make sure that you take care when it comes to your finances. - 16931
The good news is that if you have negative credit, all is not lost. This record is not really permanent. Most of the bad information will be removed from your credit history after seven years from the last infractions.
Even though financial mistakes that damage your credit report can be fixed, it will require seven years. In order to avoid waiting seven years to have better credit, you need to take good care of your credit history now.
Late payments on any loans or rotating credit will be a negative mark on your credit history. Make a point to pay your debts on time. If that is a problem for you because of organization then pay your bills early. Before you go to talk to a lender you want to have at least a year's worth of on time payments so they can see the new trend in your finances.
There are times when you get behind on the payments and work out a payoff arrangement with credit card companies or store cards. This is a smart thing for you to do in the long run (but only if you cut up the cards and don't get any more credit lines), but it could be a negative strain on your credit history in the short run. Settlements of any kind will put a mark on your credit history.
Filing for bankruptcy causes serious negative repercussions to your credit history. Doing so will remain a part of your credit history for more than the standard seven years.
When lenders are trying to decide whether or not you can be trusted to pay back the money you wish to borrow, they will judge you by your credit history. Bankruptcies filed under chapter 13 stay on your credit history for seven years, much like other negative information. If you file for chapter 7 bankruptcy and thus do not have to pay back debts you have racked up, that information will remain a part of your credit history for ten years.
Loans are often offered to people with a negative credit history at interest rates three or four percent higher than normal. The financial decisions you make now can potentially affect you for the next seven or even ten years, so make sure that you take care when it comes to your finances. - 16931
About the Author:
Thinking of trying to lower your payments by negotiating credit card debt? Be sure to visit the Debtopedia website to get some helpful tips first.
posted by Edgar at
00:37
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