How Long Do Black Marks Stay On Your Credit Report?Money 4 You Payday Loans
Most of us have at one point, or the other run into financial difficulties that have made it impossible to make a payment on time. Something as simple as making a late payment on a credit card leaves a black mark on your credit report. This could negatively impact your credit score.
Although the black mark is not permanent, it could take a while. In this post, we discuss how long various black marks will last on your credit report before they are finally dropped.
- Missed payments – payments that are more than 30 days late will stay on your credit report for seven years
- Account charge off – failure to pay a debt as per the terms set out will result in a mark that takes seven years to drop from your credit report
- Repossession – not paying for a financed item such as a car could result in a repossession. This stays for seven years in your credit report
- Collections accounts – a creditor may assign an unpaid loan to a debt collector or sell the debt. Should your account go to collections, the mark stays on your credit report for seven years
- Late student loan payment – late payment of private or federal student loans stays on your credit report for seven years
- Bankruptcy – Chapter 7 bankruptcy stays on your report for 10 years while Chapter 13 lasts for seven years
- Foreclosure – failure to make payments on your home could prompt the bank to seize it. This sticks on your credit report for seven years
Can you get those black marks removed any earlier?
A bad credit report could not only affect your eligibility to access credit, but it could also affect your employability. Whether the black marks are a result of your deeds or inaccurate details, you need to take a few steps towards “improving credit score.
Follow the below steps to rectify the black marks on your credit report:
- Get a copy of your credit report – you should get a free copy of your credit report every year.
- Review the information therein to identify any errors or outdated listings
- Contact the credit bureau if there are any inaccurate details. The law requires that credit bureaus review any errors within 30 days. While you may file for a dispute online, sending a hard copy ensures that you have a paper trail where you can attach supporting documentation
- If the information is accurate, you could request your creditor to provide you with a “goodwill adjustment,” which removes the late payment. You could also negotiate the removal of the black marks if you have a good relationship with your lender.
As you take care of the black marks on your credit report, you need to take steps that will prevent such issues from arising in the future. You need to be proactive about your credit reputation by automating payments or setting payment reminders. Always inform your creditor in case you run into financial difficulties.
Get Payday Loans at Money 4 You Payday Loans
Payments to creditors can cause you huge financial problems. Taking a payday loan makes it easy to make ends meet during such times. Money 4 You Payday Loans is a locally owned and operated loan company that serves residents in multiple locations. Contact us today at (801) 293-0865.