Credit report tips

Man signing a contract when buying a new houseOne 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

 

Written By

Currently a Senior Loan Officer at Cross Country Mortgage LLC, it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

Related Posts

Weekly real estate market update 2/14/25… record percent of buyers plan to move this year

🖨 Print Article Showing activity is in a slump compared to the last three years… not sure if it is because of the SuperBowl last weekend or the cold snap...

Cost vs Value 2024… best home improvements for resale value

🖨 Print Article In the 2025 Outlook for Home Remodeling, Carlos Martin, Director of the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, explains: “. . . homeowners...

Subscribe to Our Newsletter for Market Updates & Mid-Century Modern Listings

Our weekly HomesMSP Update includes current local market information and a curated list of mid-century modern properties for sale, plus posts from an inspector, a lender, a stager, info about neighborhoods, life in the Twin Cities… even recipes!

This field is hidden when viewing the form

Blog Categories

Archives

Sharon and John Hensrud

About Us

The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.