How Long Can You Expect Each Mark On Your Credit Report to Last?

September 12, 2013

Know how long things stay on your credit reportWhen you are considering a new home in Chicago, you need to be sure to watch your finances – as every on-time payment, as well as every slip-up, weighs on your ability to get a mortgage and the terms that you will have to deal with over the life of your loan. The Equifax experts explain more about the weight such actions have on your credit reports in the new article, “

How Long Does Information Stay on My Credit Report?

What it comes down to is there are three main ways your credit is influenced by your financial transactions, and each of those leaves a certain footprint:

  • Positive transactions leave their mark for 10 years, so when you finish paying off a loan like a car or mortgage, or amicably close a credit account, you are looking at a positive bonus to your score for about 10 years.
  • Negative transactions usually leave a mark for seven years or so, plus the time between when it was reported by the creditor to a collection service, which is usually 180 days. In this case, you can expect that late account payments, judgments and paid tax liens to remain on your reports for right around seven years. Each of these actions lowers your credit scores by different amounts, but none are good, so try hard to avoid them. The two outstanding forms of score-lowering actions are  bankruptcy, which stays on for 10 years or so, and an unpaid tax lien, which will remain on your credit report for up to 15 years.
  • Inquiries range from pre-approved credit cards to full mortgage investigations into your credit to determine your risk and creditworthiness. Some of these, like promotional inquiries and account monitoring for credit protection, do not change your score and stay on your report for 12 months. Personal inquiries, like you requesting your credit report and score, stay for 24 months. Hard inquiries like lender checks for a mortgage can damage your score if many are done at one time and will also stick to your score for 24 months.

For more

personal finance information, from how to best save for retirement and avoid debt to plan for the future and make a budget, see the Equifax Finance Blog.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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