Negative Info 

Negative Info

A pressing question that

many people ask is about

negative information on

their credit report.

I came across an article

that answers that question.

"Information that can have

a negative impact on your

score includes hard

inquiries, accounts that

have gone to collection,

bankruptcies, tax liens and judgments."

Source Yahoo Finance – How Long Does Negative Info Stay on My Credit Report?

There are a few areas where negative info can affect your credit.

The first area of negative info is the number of inquires on your credit

report.

These include applying for a car loan, apartment, insurance and etc.

They stay on your credit report for two (2) years.  However they only affect

your credit for the first year.

You must be mindful that if you are shopping around for a car do so with in

a 30 day period.  That way all of the inquires will count as one.

The next area of your credit report to look for negative info is with your

credit accounts.  Negative credit accounts will stay on your credit report

for  seven (7) years.

The time on this starts once the account is reported late.  According to the

article a paid account will be deleted at the end of a seven year period.

You must pay close attention to this because not all accounts are

automatically deleted after the seven years.

This is another reason it is so important to get your free credit report each

year.

Negative info can be found with collection accounts.

The article states that collection accounts stay on your credit for seven (7)

years plus another 180 days from the start of the time the account was

delinquent until it was placed in collection.

The other thing that you have to look for with this kind of negative info are

multiple collection accounts.

If you plan to settle a collection account you must get your agreement in

writing.

I recently had a client who settled a debt that he didn't get in writing they

sent the remainder of the balance as a cancellation of debt that he had to

report on his taxes as income.

Another area of the credit report that may contain negative info is the area

of public records.

Chapter 7, 11, and 13 bankruptcies remain for 10 years from the date filed.

Paid tax liens stay for seven (7) years and unpaid tax liens are indefinite.

According to the article the IRS has a fresh start where a paid or satisfied

tax lien is removed from your credit report.

Having negative info like a tax lien often depends on the dollar amount.

Besides the tax liens another public record that can show negative info is a

judgement.

Paid judgement can be deleted after seven (7) years.  You must check with

your local courts since some judgement you may have to pay to be

released once paid off.

Do you have negative info on your credit report???

Your Financial Coach,

Renee Lawson

Recommended Resources:

FREE Video reveals one amazingly simple thing you can do to increase your credit score. Check out the video at www.totalprosperityclub.com.

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