So, you’ve gotten hit with a negative item on your credit report. Now you’re asking yourself, How long do negative items stay on your credit report? Worst case scenario? Negative items stay on your credit report for 7 years!
In today’s post, we’ll outline some different types of negative items and how long they stay on your report. It’s important to get these things removed if you can, but if that’s not possible, at least now you’ll know what to expect.
1. Late Payments
If you’ve been missing your payments regularly and have been more than 30 days later on some of them, you’ll experience negative hits on your credit score.
Falling behind on your bills is never a good idea. Delinquencies stay on your credit report for 7 years and can have a stronger impact if left unnoticed.
Make payments as quickly as possible, so that you can get back on track. Contact the credit bureaus and consult with them to take care of any leftover items. The negative items on your report will wear off over time, but you will have to explain your case clearly.
Late payments happen to even the most responsible borrowers. Try to work with your lender, explain the situation and see if there’s anything they can do to forgive your late payments.
2. Taking on Too Much Credit
This is a common problem that many people have gone through. We take on too much credit and can’t make the payments on them. A high-credit utilization alert can really start to sting after 30 days of non-payment.
If you have too many credit cards, loans, or payments to make then cutting them down is a good idea. It’s smart to use less than 30% of your credit limit. Don’t cross the limit over, as the compounding effects may derail your credit score.
Credit utilization is all about the balance on your accounts. So, as an example, if your only credit is a $1,000 credit card, make sure to keep the balance below $300 at all times.
Account charge-offs are a strong indicator of bad borrowing practices. If you don’t pay the owed amount in full as a part of your installments, then you might see a negative hit on your score.
Your lender may eventually give up after a few months of disorganized payments.
The charge-offs can stay for many years if left unnoticed. They can have a strong impact even if you’re practicing good creditworthiness years later. That’s why it’s important to clear out these negative hits early on.
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