A common misconception exists that negative comments will be wiped from your credit bureau record within 7 years. Although payment records, good or bad, may be eliminated within that time period; bankruptcies and judgments may stay for a ten year term, or more. There is no law that requires credit agencies to delete factual information. Even different agencies may have different policies regarding the information that they post.
Besides bankruptcy, individual entities such as credit card companies may deny future credit forever once your social security number has been flagged within their offices. The world of credit reporting is very sophisticated about avoiding unnecessary risks, and those with a record of payment problems risk a lifetime of difficulty in this area.
There are some consumer rights that permit an individual to seek corrections of misinformation that might be posted. It is a good idea to examine one’s credit report once a year. This is especially true for those who may have slow payment histories with their bills. If a business has reported late payment history, they may also have failed to report accounts that were satisfied after the end of their payment schedules.
It is important to remember that each person is only a name and number within their credit file. No one cares at the credit agency about why, or how you were delinquent in your payments. Every person must take personal responsibility for the accuracy within his/her credit report. Incidentally, everyone is entitled to a free annual credit report from the major credit bureaus. You can request yours at: freecredit report.com on the Internet.
For those interested in improving their credit records, knowing exactly what has been reported is essential. Even in the event that their report is accurate, every person has the right to file an explanation to the slow or bad payment record. Those who have delinquent medical bills may benefit by placing an explanation of why the payment was not made. Those who pull your credit file may accept your explanation as reasonable, and discount the negative aspect of that particular debt.
Since negative comments on your credit report can have such impact on your ability to get loans on necessities such as cars and home loans, every effort should be made to improve the quality of your credit report. Each negative comment should be addressed, and solved if possible. Every old debt that is resolved can be noted to remove some of the negative aspects from your report. It is definitely worth the trouble to negotiate with each credit agency to improve your report as is possible.
Remember, your credit file affects the next 7 years of your credit activities in the business world. Since bankruptcies and judgememts affect you for 10 years and beyond, make every effort to avoid such negative notations in your credit file. Your future depends upon it.