Certain remarks or items can be very damaging to a person’s credit history. This is why it’s very important to check your credit report at least twice to make sure that your report is free from errors and bad remarks. Listed below are things that you’d never want to see in your credit report.

1. Charge-offs. What are charge offs? When you default from your payments for a 6 months or longer, a creditor may consider your debts as charge-offs, meaning the debts are uncollectible. While it may seem like a convenient way not to pay your debts, it’s important to understand that a charge-off is a derogatory remark which can remain in your report for seven years.

2. Debt collections. A creditor may also assign collection of debts to a debt collection agency if you continue missing your payments for 6 consecutive months or longer. This fact will also be reflected in your report which could immediately send a negative impression to prospective lenders.

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3. Bankruptcy. When debts become too overwhelming, a borrower may decide to file for bankruptcy. This is a legal option which could discharge a person from debts and liabilities. However, the effect of having a history of bankruptcy can be damaging as well. Furthermore, it will remain in you report for seven to ten years. As soon as your debts have been discharge, you must take the steps to rebuild your credit right away.

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4. Foreclosure. If you fail to pay your mortgage on time, your lender can move to take possession over your property. The process is called foreclosure. A record of foreclosure can also remain in your report for seven years and can make it more difficult for you to apply for new credit.

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5. Tax liens. If you fail to pay your property taxes, the government can seize your property, put it in an auction and use the proceeds to pay your taxes. This can be done even when the property has been foreclosed. Just like foreclosure, tax liens will also be recorded in your report and can remain for ten to 15 years.

6. Lawsuits and Court Judgments. A creditor may also take legal action against a borrower by filing a lawsuit. If the case is found valid and a court judgment has been made, the remark will be reflected in your credit report and remain there for up to 7 years.

About the Author

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Credit Reports Online

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About Melanie Mathis

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. Connect with Melanie Mathis on Google+