Your credit report is the Holy Grail of documents used by lenders, employers, insurance companies, etc… to decide whether or not to loan you money, give you a reasonable rate, or even allow you to move into an apartment.
Negative marks on your credit report go much further than just preventing you from getting a loan. So, how long does it take for these negative marks to go away?
Delinquent payments are permitted to remain on the credit report for up to seven years. That’s right, a single missed payment over the course of a 10-year loan can stick with you for almost a full decade.
It is quite the price to pay for missing a payment, which is why we always recommend contacting the lender prior to the due to attempt to work out terms that will prevent this from happening.
Default loans or credit cards can end up remaining on your credit report permanently if you are not careful. Generally, these types of delinquent credit reports can fall off after seven years, but if there is any contact with the lender and the debt is acknowledged, the debt can be refreshed by the lender.
Consumers are best served to rework the terms of the loan or seek counseling to work out terms for them. This type of debt can be very difficult to have removed from the report.
Bankruptcy can and will remain on your credit report for at least seven years, 10 years in most cases. In addition to the bankruptcy, any delinquent debt included in the bankruptcy may also remain on the credit report during that time.
It will be listed as charged off debt included in the legal action, but it will remain there for all future lenders to see.
Hard inquires are the quickest marks to be removed from a credit report. They generally remain on the credit report for two years. This is why you must be careful when applying for loans or credit cards.
Too many hard inquiries too close together throws up a red flag to lenders. Not only will they carefully consider extending credit, but your credit rating will also drop from having them on your report.
It is best to do your due diligence and apply to the company with which you know will approve the card or loan.
Doing so will only create one hard inquiry when you make an attempt at securing another credit card or loan.