Credit Report Mistakes

In the last article I wrote about how long negative marks will stay on your credit score

. Those ones were not so bad. Late Credit Card payments are way more damaging.

Late Payments? Seven Years. A few creditors just might show you some mercy and will erase past credit problems if you settle your account immediately. Unfortunately, a late payment can occur whether your account is thirty days past due, all the way to 150 past due. Seven years from the first day the debt was reported will be the day that the information is taken off of your credit report. Fortunately, these negative marks are most common and have the least effect on your credit score.

Tax Liens come along with seven years of bad credit. A tax lien usually occurs when the local state or federal government claims ownership of your property because you haven't paid your property or income taxes when they were due. No matter how fast you pay them, big brother is angry that you made him go out of his way to take your property. Seven years.

If you have a tax lien against you that you continue to not pay, it can remain on your credit report for 15 years. Your chances of being able to keep any money from Uncle Sam are slim to none, so might as well pay up now if you are in this scenario.

Foreclosures are never good news and they will be on your credit report for seven years. Considered to be one of the most severe negative accounts you can have on your credit report, if you have a foreclosure on your record, your chances of owning another home are shot unless you plan to pay for it entirely in cash.

Defaulting on student loans is never a good thing to do! Even though before the administration of George W. student loans were generally forgiven if they were declared during a bankruptcy hearing, times have changed so it's neccessary to take these things seriously. Defaulting on a student loan happens after 270 days of nonpayment. And before the loan is defaulted, you can be positive you will receive a number of late payment fees.

Then there's bankruptcy. Bankruptcy will stay on your report for ten years, and instead of giving a creditor your report, you may as well say "I am fiscally irresponsible and will be so for the next ten years." So you may wind up living with that nosy mother in law that I wrote about in article 1 after all if you do not keep track of your finances.

by: Mallory Megan

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