Your credit reports contain a record of your borrowing and repayment history, including both positive and negative information. Negative entries (the kind that can hurt your scores) generally stay on your credit reports for seven years. By contrast, positive information (which can help build your credit) typically remains on your credit reports for at least 10 years, and can remain indefinitely.
Here’s a basic primer on what information goes on your credit reports, including how these entries affect your credit and how long they stay there.
Key Points
• Negative entries generally stay on credit reports for seven years; positive information can remain for at least 10 years.
• Credit scores range from 300 to 850, with higher scores indicating better credit health.
• Hard inquiries can affect credit scores and stay on reports for about 24 months; soft inquiries do not impact scores.
• Disputing errors and requesting goodwill deletions can help remove negative information from credit reports.
• The impact of negative entries diminishes over time, especially if you practice good financial habits.
What Is a Credit Score?
A credit score is a number designed to predict how likely a person is to repay a loan, based on their credit history. Credit scores generally range from 300 to 850, with higher scores indicating better credit health. Lenders and other creditors use your credit score to determine whether or not to approve your application for financing. Credit scores are also used to determine the interest rate and credit limit you receive.
You actually don’t have just one credit score, but several. The reason is that credit scores can be calculated using different credit reports (we each have three, one from each of the major consumer credit bureaus) and different scoring models. The two most commonly used scoring models are FICO® and VantageScore®.
Here’s a look at some of the main factors that affect your credit scores:
• Payment history: How consistently you pay your bills on time.
• Amounts owed: The total amount of debt you currently owe
• Credit utilization: How much of your available credit you’re using
• Length of credit history: How long you’ve had credit accounts open.
• New credit: How often you apply for new credit.
• Credit mix: The variety of credit types you have, such as credit cards, mortgages, and car loans.
• Negative events: Whether you have had a debt sent to collections, a foreclosure, or a bankruptcy, and how long ago.
💡 Quick Tip: Your credit score updates every 30-45 days. Free credit monitoring can help you learn about your score’s normal ups and downs — and when a dip is cause for concern.
What Is a Credit Report?
A credit report is a detailed record of your credit history compiled by one the three major credit bureaus — Equifax®, Experian® and TransUnion®. The bureaus collect and store financial information about you that is submitted to them by creditors (such as lenders and credit card companies). Creditors are not required to report to every credit bureau. As a result, your three credit reports may contain slightly different information. Your credit report updates when creditors send new information to the credit bureaus, which generally happens every month or so.
When you apply for credit, lenders will typically check one or more of your credit reports to determine your ability to repay loans. Negative information on your reports can signal higher risk and make it hard to secure credit or result in higher interest rates.
You can access free copies of your credit reports by visiting AnnualCreditReport.com.
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How Long Does Positive Information Remain on Your Credit Report?
Positive information — such as timely payments and accounts in good standing — can remain on your credit report for up to 10 years. For example, an account that’s paid off in good standing (meaning there are no late or missed payments) will stay on your report for 10 years after the last payment was reported. This positive information can help maintain, or even build your credit, as it reflects your ability to handle credit responsibly.
Active accounts that are in good standing will continue to show up on your credit report indefinitely. Keeping these accounts open and in good standing can contribute positively to your credit history for as long as they are active.
How Long Does It Take for Information to Come off Your Credit Report?
Negative information doesn’t stay on your credit reports forever, but how long it remains depends on the type of negative entry:
• Late payments: Payments made 30 or more days late can remain on your credit reports for seven years from the date of the missed payment. Even if you bring the account current, the late payment entry remains.
• Collection accounts: When an unpaid debt is sent to a collection agency, a separate collections account will appear on your credit reports and stay there for seven years from the date of the original delinquency.
• Bankruptcies: Chapter 7 bankruptcies stay on your credit report for 10 years from the filing date, while Chapter 13 bankruptcies remain for seven years.
• Foreclosures: A foreclosure on your home can remain on your report for seven years.
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Will a Lender Getting a Copy of My Credit Report Affect My Score?
Whether a lender checking your credit report can affect your credit score will depend on the type of credit check they do.
Hard inquiry:This occurs when a lender or creditor checks your credit report as part of a credit application process, and stays on your credit report for about 24 months. One hard inquiry won’t have much, if any, impact on your credit scores. Multiple hard inquiries within a short time frame, on the other hand, can have a more significant effect. Fortunately, if you’re rate-shopping for the same type of credit (e.g., a mortgage or auto loan), multiple inquiries within a short period are usually grouped together as a single inquiry for credit-scoring purposes.
Soft inquiry:A soft credit check is what happens when you check your own credit or when a lender preapproves you for an offer without a formal application. Also when an employer, insurer, or utility checks your credit, it’s typically a soft credit check. While soft inquiries remain on your credit reports for two years, they don’t impact your credit score.
Recommended: How Long Does It Take to Build Credit From Nothing?
How to Remove Negative Information From Your Credit Report
While most negative information must remain on your credit reports for a set time period, there are certain steps you can take to remove negative entries:
• Dispute errors:If there’s inaccurate or outdated negative information on any of your credit reports, you can file a dispute with the appropriate credit bureau online or by mail. The credit bureaus have 30 days to investigate your claim, and if the information is incorrect, it will be removed. Filing a dispute won’t hurt your credit, and could potentially have a positive impact if you’re able to get negative information off your credit reports.
• Request a goodwill adjustment:If you have a history of on-time payments but made one late payment, you might consider requesting what’s known as a “goodwill deletion.” This involves sending a letter to your creditor, explaining why you were late with a payment, and asking them to remove the negative entry from your report as a gesture of goodwill. Success depends on the creditor, but it can be worth asking if it’s a long-standing account and you’ve generally been a responsible borrower.
• Wait for negative information to drop off: If the negative information is accurate, your only option may be to wait for it to age off your report. Most negative entries remain for seven years, with some exceptions like Chapter 7 bankruptcy. Over time, however, the impact of negative information diminishes, and practicing good credit habits, such as lowering your credit utilization, can help mitigate its effects.
The Takeaway
Your credit reports contain a detailed history of both positive and negative financial actions, and how long that information stays on your reports varies depending on the nature of the account or event. Positive information, such as timely payments and accounts in good standing, can remain on your reports for 10 years-plus; negative information, such as late payments and bankruptcies, typically stays for seven to 10 years.
While negative entries can take a toll on your credit scores, they don’t remain on your credit reports forever. And even while they are there, their influence lessens over time. To minimize the impact of negative information, it’s important to monitor your credit reports, dispute any inaccuracies, and maintain good financial habits moving forward.
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FAQ
Is it true that after seven years your credit is clear?
It depends on the type of negative entries that are in your credit reports. Late payments, collections, Chapter 13 bankruptcies, and foreclosures typically fall off after seven years. Chapter 7 bankruptcy stays on your credit reports for 10 years.
Can you get negative marks removed from your credit report?
It’s possible to remove negative marks from your credit report, but only if they are inaccurate, outdated, or unverifiable. If you notice any inaccurate information on your credit reports, you can file a dispute with the credit bureaus, either online or by mail. They are required to investigate within 30 days. If they find the information is inaccurate, they will remove it.
Legitimate negative information, however, will generally remain on your credit report until its expiration date.
How long before a debt is uncollectible?
The time after which a debt becomes uncollectible, known as the statute of limitations, varies by state but is generally three to six years. Once the statute of limitations on a debt has expired, creditors can no longer sue you to collect payment, though they can still attempt to collect it. Keep in mind that the debt can remain on your credit reports for up to seven years (and impact your credit scores), even after it becomes legally uncollectible.
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