How Long Does Negative Information Stay on Your Credit Report?

Negative information like missed bills can do a number on your credit report and change your credit score for the worse. Just a few ticks down on your credit score can have major negative consequences for your finances. Here’s a look at what you need to know.

Defaults

When you miss a loan or credit card payment by more than 90 days, it’s called a default.

• Defaults stay on your credit report for seven years past the default date.

Accounts in Collections

Similar to defaults, accounts that go to debt collectors have not been paid for several months.

• This information stays on your credit report for seven years from the missed payment date.

Foreclosures

If you miss a payment on your mortgage, it can mean big trouble for you and your house.

• Lenders can initiate a foreclosure — a forced sale of the property — after 90 days without a payment.
• After 120 days, the lender can seize the house.
• Foreclosures stay on your report for seven years.

Late Payments

Believe it or not, just one missed payment reported to a credit bureau can stay on your report for seven years.

Chapter 7 Bankruptcy

If you file for bankruptcy, it will stay on your credit report for 10 years after the initial filing date.

Do One Thing: Automate bill payments so that you never have to worry about negative information hitting your credit report.

Original article by Chris O'Shea and adapted in partnership with SavvyMoney.