Bad Things You Don’t Want to See in Your Credit Report

Certain entries, remarks, or even transactions in your annual credit report can inflict severe and long-term damage to your credit history. In fact, if you won’t get rid of them in your credit files, they can surely affect, if not completely ruin, your financial prospects.

 

Hence, we encourage you to watch out for the following items, which are known to inflict a negative and at times derogatory effect in your credit profile:

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.

[Article: Credit Card Consolidation Mistakes to Avoid ]

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.

[Article: How You Can Bounce Back Fast After Bankruptcy]

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.

[Article: Ways to Avoid Foreclosure Scams]

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

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

We will be happy to hear your thoughts

Leave a reply

NHBS Inc © 2024

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

Business Loans

Consumer Loans

New Horizon
Logo
Enable registration in settings - general