Negative Information – Consequences of Negative Information

What is Negative Information?

Negative information, as it relates to credit, is information contained in a credit report which makes it less likely for a lender to loan money. The time frame for which negative information can stay on a credit report is set by the Fair Credit Reporting Act. Most negative but accurate information can stay up to seven years on your credit report. Some bankruptcy information on the other hand can stay as long as 10. The act also gives consumers the right to challenging and removing inaccurate information from a credit report.

Negative Information

Negative Information

Generally, negative information remains on your credit report for 6 years. Be it as it may, some information may remain for a shorter or longer period of time.

It may include:

  • Missed payments on a debt
  • Accounts that were sent to a collection agency
  • Previous bankruptcies.

Understand that this in your credit report can hurt your credit score.

How Long Does Negative Information Stay on Your Credit Report?

A credit reporting company normally can report the most negative information for seven years.

Understand that information about a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Bankruptcies, on the other hand, can stay on your report for up to ten years.

Although the credit reporting companies normally won’t report this negative information after the seven-year limit, they still may retain your information on file.

There are also certain instances where credit reporting companies will report it. These time limits on reporting details may not apply if the credit report will be used in connection with:

  • When your application for a job pays more than $75,000 a year.
  • Your application for more than $150,000 worth of credit or life insurance.

Even though some companies make promises of repairing or fixing your credit for an upfront fee. Be it as it may, no one can actually remove bad details. Like late payments, from a credit report if it is accurate. The much you can do is get your credit report fixed. If it contains errors, and this you can do on your own at no cost.

Consequences of Negative Information

Understand that it will hamper your ability to get the best credit cards. And the best loan terms. Too many negative items or even one severe negative item. On your credit report can disqualify you. From qualifying for a credit card or even a loan. Now even though negative information will eventually.  Leave your credit report, the amount of time.it takes will depend on the item in question. While foreclosures stay on your credit report for seven years. Completed chapter 7 and chapter 11 bankruptcies remain. On your credit report for up to ten years. Chapter 13 bankruptcies stick around up to about seven years. Be it as it may, having other accounts in good. Standing will reduce the impact of negative items over time. Even before they are removed from your credit report.

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