A fresh, new credit report can display a lot of information about a consumer’s credit history, but there are going to be a few items that will stick to the history like chewed gum. These derogatory items can affect a credit score and overall history for many years; however, each type of negative account or item can last a different length of time. Let’s break down each type of negative item and how long it will last.
Hard inquiries are the small pinpricks that can create holes in an otherwise good credit report. One or two will not do much damage, but a bunch can add up, lowering a credit score by 1-5 points for every inquiry. Luckily, any “soft inquiry” on the credit report will not affect a credit score or history.
Hard inquiries will last up to two (2) years on a credit report. For example, if a credit inquiry occurs in October 2020, that means the inquiry will disappear in November 2022. Because of the two-year wait time, inquiries will most likely be the least detrimental to credit history.
Late Payments, Charge-offs, and Collections
Most negative items and accounts that appear on a credit report fall into one of these three categories: late payments, charge-offs, and collections. These items may be referred to as derogatory or delinquent accounts on credit history, and these items will be the most detrimental to a credit score.
These types of accounts will last up to seven (7) years on a credit report. Due to this time limit, negative accounts can haunt a credit report for a long time and cause a lot of headaches in the future. So it is best to avoid missing payments on a credit card or installment account like a loan. The other option is to dispute any of these accounts with the credit bureaus to get rid of them.
The worst-case scenario for credit history is a bankruptcy. These are public records that appear on a person’s credit report. Credit bureaus pull these records from bankruptcy courts and any publicly available information. Bankruptcy can lower a score from 100 to 200 points!
The worst part about a bankruptcy is that it will last for up to ten (10) years! Additionally, it may be near impossible to dispute these with the credit bureaus because they are public information instead of being reported by a creditor or furnisher like a credit card company.
As implied before, consumers can easily send letters or online disputes with the three credit bureaus (Experian, Equifax, and Transunion). All of this information comes from the Fair Credit Reporting Act (FCRA), including the length of time these things appear on a credit report. Additionally, according to the FCRA, people are free to dispute any negative information that is appearing on their credit history with the bureaus. However, the option to dispute these items may be overwhelming, especially navigating all the ins-and-outs of the credit bureaus and keeping on top of constant disputes. A single letter may not remove these items, so it may take months or even a year to get results. Luckily, Fix Your Credit Consulting has the resources, experience, and knowledge to dispute these items on the consumer’s behalf. Give us a call at (877) 212-2450 for a FREE consultation to get you on track with your credit.
If you have any questions, feel free to give us a call at 877-212-2450!
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