A Timeline of Credit Record Facts

The credit review is divided into three evaluation timeframes. And alongside each time frame are little-known credit record facts that are essential to your understanding or your Credit Score. The three-time frames are 12 months, 24 months and 48 months.

First Time Frame: Twelve Months

This frame may be called the “Payment” frame; this usually includes special programs for the credit consumers. The last 12 months worth of credit are the months reviewed by a lot of programs. And in those reviews, late payments before that and even mortgage payments are taken no notice of. In fact, bad credit only stays on record for seven years. That’s why we encourage readers to check credit reports at least twice a year to avoid problems in the future.

Second Time Frame: Twenty-four Months

This time frame now involves more mainstream activities such as a group of loan programs. This usually reviews the last twenty-four months of payment.

In as early as 24 months, you may already (and must be) debt-free. A President of a loaning company once said that, “with commitment, time and consistency, it is easy to pay off your debt.” How to do it? Well, aside from having part-time jobs, you may consider reassessing your lifestyle and find out how much more you may save by sacrificing a few comforts. Part-time jobs, however, are on top of the list for it is fast in generating cash.

Third Time Frame: Forty-eight Months

The 48 months of credit history is usually the less flexible among any programs. And to emphasize, no programs really look into the last seven years of your credit history. By this time a Credit User should already know the value of checking his credit report regularly as well as updating each from the different bureaus.

(Related Article: The Do’s and Don’ts to avoid damaging your credit score)