It is very important to make sure the information in your credit report is correct. Lenders review your credit report and use this information to help decide whether or not you qualify for a loan. Errors Can Cause ProblemsErrors in credit reports occur all too frequently, often because the report is incomplete, or incorrectly contains information about someone else. Unless the errors are flagged and corrected, they can cause problems with your efforts to get a loan or mortgage or even employment, and continue to haunt you for years to come. You can correct errors you find in your report by contacting the credit-reporting agencies. We’ll discuss more on how to do this and provide some sample contact letters in Improving Your Credit.
Negative Information
It Can Follow You for Seven YearsIf you have ever paid your bills late or defaulted on a loan, this negative information will be reflected in your credit report. If the information on your credit report is negative but accurate, it cannot be removed. Negative information remains in the report even after the debt has been repaid. Negative items, such as payments that are 30 days late or more on your credit card account(s) and any collection accounts, will stay on your credit report for up to seven years from the date of the occurrence. BankruptciesCourt records, such as Chapter 7 and 11 bankruptcies, will continue to be reported for up to 10 years from the date filed, even if the bankruptcy is eventually dismissed or discharged. There are some exceptions to this rule. Check with the reporting credit agency or your attorney for more details. Bankruptcy is discussed in more detail in the Bankruptcy section.