Negative Credit History Timeline
Commercials that advertise ways to obtain a free credit report often emphasize the importance of doing so because of the serious problems you can run into because of having a negative credit history. A person with a negative credit history will have an impaired ability to borrow money, get a good interest rate, and sometimes even get a good job.
Fortunately, a negative credit report is not permanent and thus can be made better. After seven years, the majority of the undesirable contents of a negative credit report will automatically be removed.
Even though financial mistakes that damage your credit report can be fixed, it will require seven years. In order to avoid waiting seven years to have better credit, you need to take good care of your credit history now.
Your credit history will be negatively impacted by late payments on rotating credit and loans. For that reason, paying such debts in a timely manner is very important. Having proof that you have been able to pay bills on time for one entire year is important when you meet a lender to borrow money. Some people are not organized and thus have a hard time making on time payments. If this is the case for you, be sure to pay off your bills as soon as possible.
Some credit card companies and retails stores that distribute credit cards will allow you to make a special payment arrangement with them if you are unable to pay off the debt that you have incurred. This could be a wise decision, but it will put a negative mark on your credit history. This effect will only be short term, though.
Filing for bankruptcy causes serious negative repercussions to your credit history. Doing so will remain a part of your credit history for more than the standard seven years.
Keep in mind that this is the picture the lenders are looking at to see how reliable you are at paying your debts. Chapter 13 bankruptcies will remain on your history for seven years, but a Chapter 7 bankruptcy (where you don't have to pay money back) will remain for ten years.
Having a negative credit history could mean adding 3 or 4 percentage points to any loans that you might be interested in getting. It could mean that you will be turned down altogether. What you do right now with your credit can affect your financial situation for seven (or even up to ten) years. Take care that you don't do damage to something so valuable.
Fortunately, a negative credit report is not permanent and thus can be made better. After seven years, the majority of the undesirable contents of a negative credit report will automatically be removed.
Even though financial mistakes that damage your credit report can be fixed, it will require seven years. In order to avoid waiting seven years to have better credit, you need to take good care of your credit history now.
Your credit history will be negatively impacted by late payments on rotating credit and loans. For that reason, paying such debts in a timely manner is very important. Having proof that you have been able to pay bills on time for one entire year is important when you meet a lender to borrow money. Some people are not organized and thus have a hard time making on time payments. If this is the case for you, be sure to pay off your bills as soon as possible.
Some credit card companies and retails stores that distribute credit cards will allow you to make a special payment arrangement with them if you are unable to pay off the debt that you have incurred. This could be a wise decision, but it will put a negative mark on your credit history. This effect will only be short term, though.
Filing for bankruptcy causes serious negative repercussions to your credit history. Doing so will remain a part of your credit history for more than the standard seven years.
Keep in mind that this is the picture the lenders are looking at to see how reliable you are at paying your debts. Chapter 13 bankruptcies will remain on your history for seven years, but a Chapter 7 bankruptcy (where you don't have to pay money back) will remain for ten years.
Having a negative credit history could mean adding 3 or 4 percentage points to any loans that you might be interested in getting. It could mean that you will be turned down altogether. What you do right now with your credit can affect your financial situation for seven (or even up to ten) years. Take care that you don't do damage to something so valuable.
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Are you thinking of trying to lower your monthly payments by negotiating credit card debt yourself? Make sure you visit the Debtopedia website to get some helpful information & advice first.
posted by Debt Consolidation Loan at
11:39 PM
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