icon

0808 250 8276

logo

Things You Don’t Want to See on Your Credit Report

4 Flares Twitter 1 Facebook 1 Google+ 2 4 Flares ×

No matter how long and hard you’ve tried in building good credit, all your efforts could easily be wiped rather quickly. While some minor negative entries such as late payments can be worked out on, there are other entries which can have lasting damages. These are the items that can prevent you from obtaining credit and which you would never want creditors to see on your credit report. 

Charge-offs

Some creditors would consider your account uncollectible if you missed payments for six months or more. In this case, the creditor can write off the account and report it as “written off and uncollectible” or “charged-off”. Unfortunately, this can stay on your credit report for up to seven years.

Debt Collections

Sometimes, not only will your creditors charge off your account, but they may also send it to collections. Debt collectors are third-parties hired by creditors to attempt to collect payments from you. It could either be that your original creditor places a note on your report to indicate that the account is in collection or the debt collector places an entry on your credit report, thus you can expect a sudden score drop. Be very mindful of all your dues, as even a small library fee can be sent to collection and end up on your credit report.

Foreclosure

Foreclosure is the process that occurs when the lender repossesses your home and put it out on auction to recover the remaining amount of mortgage. This will happen if you default on your mortgage loan, and unfortunately for you, foreclosure can remain on your credit report for seven years. This can severely hurt your credit score and limit your borrowing ability during this time.

Bankruptcy

Bankruptcy legally lifts off your liability on some or all of your debts, depending on the type of bankruptcy that you filed. Despite the fact that your debts have been discharged, it will continue to haunt you as each account included in your bankruptcy will be reflected on your credit report. Though you can sometimes start rebuilding your credit soon after bankruptcy, it can be very challenging as it will stay on your credit report for seven up to ten years.

Tax liens

Tax liens can be filed against you if you failed to pay property taxes on your home or another property. Under a tax lien, the government has the right to seize your property and auction it off so that the proceeds can cover your unpaid taxes. Even after foreclosure, you are still responsible for your mortgage loan. Paid tax liens can remain on your credit report for ten years, while unpaid ones can stay there for fifteen years.

Judgments or lawsuits

If other methods of collection fail, your creditors can sue you and take you to court. Once the judgment is entered against you, it will stay on your credit report from the date of filing, even after you have satisfied the judgment.

Leave a Reply

© 2013 ExpressLogbookLoan.co.uk

4 Flares Twitter 1 Facebook 1 Google+ 2 4 Flares ×