how long do durogatory items stay on credit reports?

Question

how long do the following items stay on credit reports in terms of years?

1. late payments
2. sent to collections
3. closed accounts by CONSUMER

Also, how much do each of the above contributing factors lower a credit score in terms of points?

Assuming you begin to have a "perfect line of repayment" How long does it take for a credit score to come back to a higher level? months? years?

Answer 1

Derogatory items can stay on your credit report forever. However, the negative affects on your credit score can last for up to 10 years. Payment history has an overall impact of 35%-40% of your credit score so late payments and collections can impact your credit greatly, even if you had a perfect payment history prior. There is no exact time frame that it takes your credit score to rebound from late payments, collections and such because there are so many other variables involved in credit scoring. See the blog below with everything you wanted to know about credit and credit scoring.
Ps: I have been reviewing credit and taking credit classed for over 10 years.

Answer 2

Late payments will drop off 7 years from the date of the late.

Collectors cannot re-age a debt and report it for a longer period than the original obsolescence date.
How long it reports depends on the type of account it is.

If a consumer closed account is a positive account, then it can remain for 10 years or indefinately.

As for how they affect credit scores -
Lates are a major score killer but the older the late, the less impact it has.
Collections, paid or unpaid, are a negative and will impact scores.
Consumer closed accounts, in good standing, may have a negative impact for awhile. Losing the credit limit will boost your overall remaining utilization, which could hurt especially if your file is thin.

Depending on how your overall reports are, if they are clean then it should only take a few months for scores to start rising.

Answer 3

I happen to know this because I've gotten myself into a credit nightmare, and managed to get out without filing bankruptcy.

Basically, this is how it goes. If you have a late payment on an open account, it never goes away as long as that account is open. The best way to get it off is to dispute it with the TRW's and say that you were never late. If you are current, your credit company may not bother to contradict this. Or, close the account, and it should drop off in about six years. If you have a late payment on a closed account, the closed account should delete in six to seven years from the date it was first late (at least according to TRW companies).

If an account was sent to collections, that collection dings your credit and the ding stays on for six to seven years from when it was first reported. However, you can again dispute these collection company dings by saying "this is not my account" and get those collection companies removed from your TRW's. A lot of times, collection companies forward your accounts to other collection companies, and each company makes a ding. If you dispute the collection company and they no longer have your account, they will be deleted. Basically, the same goes for accounts you closed. They stay on for six to seven years (which depends on the TRW company).

Now, if you go through the dispute process, it takes 30 days to bring your credit score up. The credit companies have to respond to your dispute within 30 days, and if they don't, the TRW company has to remove them. Then, those companies cannot legally put the ding back on. I once raised my credit score by 200 points in 30 days.

Basic quick tips to bring your credit score up...

1) Don't close open accounts that are in good standing. It brings your credit score down.

2) Instead of asking late payments to be deleted, say that they were never late. This will make them positive accounts and it is better to keep positive accounts open if at all possible.

3) Ask for companies to be removed from your TRW. This will also bring credit scores up.

All this can be done through Transunion or Equifax's websites. The online dispute is the easiest, and you have to do it with each company. Otherwise, you can mail a letter to each company to dispute these things.

Hope this helps and good luck.

Answer 4

Accounts stay on your credit report for 7 years after the last activity. You are entitled to a free copy of your credit report from each of the three main reporting agencies per year. Here is the link to one of many websites:
https://www.annualcreditreport.com/cra/index.jsp

Answer 5

7-10

Answer 6

7-10 years

This is how your score breaks down:

35%- payment history
30%- total debt outstanding
15%- length of time you've had credit
10%- types of credit
10%- inquiries and new credit