Can Negative Information Affect Your Credit Score That Much?

PennyGem’s Elizabeth Keatinge tells us how bankruptcies, judgments, and liens affect your credit report.

Transcript

00:0010 years. That's how long a bankruptcy stays on your credit report. According to MarketWatch,

00:07since the National Consumer Assistance Plan went into effect in 2017, the only derogatory

00:13public record that should appear on your credit report is a bankruptcy. Experian explains

00:17the two types. Chapter 7 bankruptcy is where you do not repay any of the debt. With Chapter

00:2213 bankruptcy, you repay a portion of the debt through a repayment plan. This can take

00:26three to five years to complete and can be removed seven years from the date it was filed.

00:31There is other negative information that can affect your overall financial health. Civil

00:35judgments can affect your ability to qualify for credit or loans. Tax liens are filed when

00:40you owe the IRS more than $10,000. These can also negatively affect your overall financial

00:46picture, although they do not appear on credit reports. There are many other types of information

00:51that still appear on credit reports. Accounts that went into collections can stay on your

00:55report for seven years from the delinquency date. Experts recommend trying to settle any

01:00accounts that went into collections, reporting any errors, and monitoring your credit report

01:04from all three agencies.