Bank finance articles and tips

Negative credit information impacts your credit profile for many years to come. Old accounts can be just as damaging to your credit score today as your new accounts. It is important for you to undertake credit repair steps in order to always have a clean credit record and a high credit score. It is the only way to save money on future financing, auto and homeowner's insurance, and ensure your financial stability.

It is also important to understand how negative credit information affects your credit profile. Here is a basic overview of the length of time negatively reported credit items will remain on your credit report and lower your credit score:

General Negative Credit Information

A general rule of thumb for negative credit information is seven years. Negative credit reporting resulting from late or missed payments, loan defaults, or other failures to meet financial and credit obligations will remain on a consumer credit report up to seven years unless there is special circumstances.

There are exceptions to the seven-year rule including:

? Bankruptcy - Information about a bankruptcy will remain on your credit reports for a time period of up to 10 years.

? Judgments - If a creditor pursues a claim or lawsuit against you in court, the information concerning that judgment can be reported for up to a period of seven years, or for the time period until the statute of limitations run out depending on which time period is longer.

? Tax Liens - Information reported to the credit bureaus concerning tax liens can be reported for a period of up to seven years from the time the tax lien amount was paid.

? Defaulting On Government Loans - Information being reported to the credit bureaus concerning the default on a government-backed or insured loan, including student loans, can be reported for seven years after the government guarantor takes certain actions.

Following the Timeline

The period of time your negative information begins starts from the time you were late making a payment. It may also start on the date that the account went into collections. It does not start from the date the payment was last made on the account.

There are some irreputable creditors and collection agencies that will update the reporting status for your account which actually extends the length of time negative information will stay on your consumer credit report. These creditors and collection agents are performing illegal reporting activities. You have a right to dispute the change of information on your account to extend the time period negative information will be reported. The credit bureaus will investigate your dispute and change the date back to the original one.

Repairing your credit report will take diligence and attention to detail. In order to ensure your consumer credit report is accurate and your credit score is as high as it can be, you need to track your financials especially when your accounts go into arrearage. While most creditors and collection agencies do follow the rules, there are still some willing to risk breaking the law to increase their profits which can hurt your credit for years to come.

Steve Dowell is a seasoned writer in personal finance, specializing in credit repair. You can find more of his articles located at CreditRepair.org.

By Steve Dowell
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Personal: http://www.creditcardprocessing.net/