One of the questions I get asked a lot is how long something will stay on my credit report. The safe answer is “It depends”. Some will answer 7 years and that isn’t always correct.
Most derogatory credit like a profit and loss, collection or charge off will stay on the report for seven years from the date of last activity (DLA) on your report. This is different than seven years because if there is any activity – even if you pay $1 towards that account, the 7 year time frame starts over. What frequently happens is a creditor will sell your account just before the seven year mark and that starts the clock over again.
Judgements will stay on your credit report for seven years from the satisfaction timeframe or the starting timeframe, whichever is first.
A Chapter 7 bankruptcy will stay on your report for 10 years, but the accounts are only on the report for seven years from the discharge date. A Chapter 13 bankruptcy is on your report for seven years after the satisfaction or ten years from the start date, whichever is first.
Federal and state tax liens have no statute of limitations, so they stay on the report until they are satisfied and then for another 7 years.
Any negative credit history will affect your score and time is the only thing that really heals it. If you can get negative information off your report, that helps, but it can be hard to do. Make sure you review your credit report at least once a year and look for errors. You can get a copy of your credit report at www.annualcreditreport.com. Many credit cards also offer a copy of your report – or at least a score. The score may not be the same one we get as a mortgage report, but it gives you an idea of where you will be.
Your credit report can affect more than just getting a mortgage – insurance and potential employers may be looking at your credit report. Watch your report and make sure you look for errors on it so you have time to fix anything that can negatively affect you!
Leslie Vanderwerf, NMLS ID#335509, Cross Country Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website