Unlike positive information, negative information does not stay on your credit report forever. The general rule is that negatives on your credit report will be removed after seven years. However, different kinds of information may stay on your credit report for longer or shorter lengths of time.
Debts in Collection
Debts you owe that have been sent to a collections agency usually remain on your credit report for seven years. The seven years start when the debt is passed to a collection agency, not when the original bill was issued.
Credit Accounts
There are three primary kinds of information gathered from your credit accounts that affect your credit rating. Accounts that have been paid on time and in full will stay on your report the longest, as is the case with most positive information. When the credit account becomes past due and is officially reported as unpaid, that information will remain on your credit report for seven years. Lastly, credit accounts that are continually active, like revolving or installment debt, and have a late payment history will affect your credit for up to 10 years. The late payment history will go away after seven years, but the account activity remains on your credit longer.
Bankruptcy
A chapter 11 or 7 bankruptcy will stay on your credit report for 10 years after the date it was filed. A chapter 13 bankruptcy will remain on your credit history for seven years, unless it was never discharged. A non-discharged chapter 13 bankruptcy continues to negatively impact your credit rating for 10 years, which is an incentive to pursue dismissal of the bankruptcy as soon as possible after filing.
Liens and Judgments
A tax lien you have paid will stay on your credit report for seven years after the date of the lien being repaid. However, a tax lien you do not pay is not likely to ever be removed from your credit history. An unpaid lien is incredibly detrimental to your credit rating and should be dealt with as soon as possible.
Monetary judgments a court requires you to pay usually stay on your credit report for seven years after the judgment is rendered.
Most negative information that is passed to credit reporting agencies will remain on your history for an average of seven years. More serious information, like certain bankruptcy filings and unpaid tax liens, can stay on your report longer. Be aware of what information is negatively affecting your credit score and how long it will be visible to reporting agencies.
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