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.
Your credit history will be negatively impacted by late payments on rotating credit and loans. For that reason, paying such debts in a timely manner is very important. Having proof that you have been able to pay bills on time for one entire year is important when you meet a lender to borrow money. Some people are not organized and thus have a hard time making on time payments. If this is the case for you, be sure to pay off your bills as soon as possible.
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.
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.
Your credit history will be negatively impacted by late payments on rotating credit and loans. For that reason, paying such debts in a timely manner is very important. Having proof that you have been able to pay bills on time for one entire year is important when you meet a lender to borrow money. Some people are not organized and thus have a hard time making on time payments. If this is the case for you, be sure to pay off your bills as soon as possible.
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.
About the Author:
Thinking of trying to lower your payments or the balance owing by negotiating credit card debt? Be sure to visit the Debtopedia website to get some helpful tips first.
posted by Debt Consolidation Loan at
12:19 AM
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