Sunday, January 07, 2007

How Long Negative Information Really Stays On Credit Report And Does It Matter?

By Tim Gorman

Whenever you apply for a loan on a car or house, or whether you apply for a credit or store card, your credit history will probably be looked at by the vendor. They do this to protect their investment; after all if you are doing business with someone then you would want to know about their financial history wouldn’t you? So when you next apply for a financial product you should give a thought to any old debts (even if they are now cleared up), or even any missed payments that may show up on your credit history. But many people wonder how long negative information really stays on credit report and how much notice the lenders really take of it?

The question, how long negative information really stays on credit report, is not an easy one to answer. If it is a major financial disaster such as going bankrupt, then it can be there for about ten years. Although if the creditors are repaid, then many credit reports will take it off in around seven years. Of course this doesn’t mean that you cannot deal with finance houses. Actually you should try to build up a good credit history after bankruptcy by taking out pre-paid credit cards etc. and always making sure that everything is paid up when it is due. This can make a great deal of difference to your credit score and help you to rebuild you reputation.

So how long negative information really stays on credit report is really dependent on the type of problems you were having. After all everybody has missed the occasional payment here and there and it may be that even if this is still on your credit history then it will not be looked on too badly by the credit company.

Of course it is not only negative information that is important, so wondering how long negative information really stays on credit report might not be the thing to be worried about. The credit score can also be adversely affected by a lack of credit cards etc, where the company can see that you have made payments regularly. So taking out credit can be a positive thing if you a good payer and can boost your rating. So the best way to maintain a good rating is too use the credit system and make sure that you always pay your bills on time and then whatever your credit history, you will be well on the way to making it better.

For more information on free credit reports and tips on finding a cheap credit report try visiting, a website that specializes in providing tips, advice and credit report resources to include information on reviewing your personal credit report.

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