How Long Do Derogatory Items Remain on Your Credit Report?

Derogatory items on your credit report,

such as repossession and foreclosure, missed payments, charge-offs, bankruptcy, inquires, closed accounts, etc., are negative information that stays on your credit report for various lengths of time.

Credit Report

Here is some information about how long derogatory items remain on your credit report:

 1. Tax Lien

A tax lien is a public record of your federal or state taxes. The government claims against the assets of a business or individual who fails to pay taxes on time. A tax lien can stay on your credit report for 7 years. 

2. Foreclosure or Repossession

A foreclosure or repossession is when you fail to make payments on your property that you used to secure a loan and the bank seizes it. The foreclosure will be reported to the credit bureaus and remain on your credit report for 7 years from the date of the first missed payment.

3. Bankruptcy

Bankruptcy is a legal process in which a person or business may seek relief from the debts they cannot pay. The type of bankruptcy you file determines how long it can stay on your credit report. A chapter 13 bankruptcy will remain on your credit report for 7 years, whereas chapter 7, 11, or 12 bankruptcies will stay on your report for 10 years. 

4. Collections

If you fail to repay your debts on time, it may get turned over to a third-party collection agency or debt collector. Having an account in collections can negatively impact your credit report for 7 years. 

5. Judgment

A judgment is a formal decision made by the court following a lawsuit. Both unpaid and paid civil judgments remain on your credit report for 7 years from the date the lawsuit was filed. 

6. Charge-Offs

A bank or creditor may list your account as a charge-off when you have missed payments for 6 months. A charge-off will stay on your credit report for up to 7 years from the date your account was reported as a charge-off to the credit agency. 

7. Inquiries

Credit inquiries include soft and hard inquiries. Soft credit inquiries won’t stay on your credit report and affect your score. However, hard credit inquiries will affect your credit score and stay on your report for 2 years.

8. Closed Accounts

A closed account can still affect your credit score if it has derogatory marks such as missed or late payments, collections, and foreclosure. It will stay on your credit report for 10 years from the date the account was closed.

9. Late Payments or Delinquency

If you are 30 days late on a payment, you will be reported as late. Delinquency or late payments will stay on your credit report for 7 years. 

You can fix these credit-related issues by making payments on time, keeping your credit utilization ratio under 10%, avoiding back-to-back hard credit checks on your report, and keeping positive accounts open. 

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Related Reading: 

What Are the Things That Can Negatively Affect Your Credit Score?

Will My Credit Score Improve If I Pay Off a Collection Account?

How You Can Improve Your Credit Score 100 Points in 30 Days

Removing a Closed Student Loan from Your Credit Report

Can I Remove Collection Accounts from My Credit Reports?

Why Is Your Credit Score Not Improving?

How Does a Charge-Off Impact Your Credit Report?

What Are the Benefits of Soft Credit Check Payday Loans?

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Kimmy Burgess

Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get a no fax payday cash advance when they need it. Kimmy has over 20+ years' experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business. She has also spent time in the mortgage industry prior to her move into the payday lending field. Kimmy has a number of pets including cats, birds, and a Chinese water dragon.

Category: Credit Score

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