Many consumers encounter tough times, forget to make payments or just do not know a payment is due. The result? A ding on credit and a drop in credit score. The ding can be minor and it can be major. Either way, late payments, collections, foreclosures and bankruptcies can have a long-lasting impact on a consumers credit. Just how long you ask?
How Long Does a Bankruptcy Stay on your Credit?
The answer is based on the type of bankruptcy – Chapter 7 or Chapter 13. A chapter 7 is where you do not pay your debts back. A chapter 13 is where you make payments over time. Both stay on credit for different time-frames and the time-frames are measured from different starting points.
Chapter 7 Bankruptcy: Stays on credit for 10 years from the date of discharge
Chapter 13 Bankruptcy: Stays on credit for 7 years from the filing date (NOT the discharge date)
How Long Do Collections Stay on my Credit?
Collections, whether it is a medical or non-medical collection typically stay on a credit report for a relatively long period. It is important to note that if you pay a collection off after it has already reported to your credit, the reporting time-frame may start over.
Collections: Stay on credit for 7 years from reporting (typically)
How Long Do Public Records Stay on my Credit?
Public records such as tax liens, judgments etc… have serious staying power. There are several types of debts that qualify as a public record in addition to judgments and Federal Tax Liens.
Public Record: Stay on credit for 7 years from reporting (typically)
How Long Do Late Payments Stay on my Credit?
Ever go on vacation and forget to make a payment? If it becomes late (paid 30+ days from the due date) that little mistake can haunt you for a long time.
Late Payments: Stay on credit for 7 years from reporting (typically)
The more time that passes from a negative item hitting your credit report the less of an impact it will have on your score. It is important to monitor your credit to stay ahead of any errors. You also want to be aware of any negative information that shows up as soon as possible Sometimes creditors will work with consumers to delete negative information.
By Jeremy House