Derogatory items on your credit report, such as repossession and foreclosure, missed payments, charge-offs, bankruptcy, inquires, closed accounts, etc., are negative information that stay on your credit report for various lengths of time.
1. Tax Lien
A tax lien is a public record of your federal or state taxes. The government claims against the assets of a business or individual who fails to pay taxes on time.
2. Foreclosure or Repossession
A foreclosure or repossession is when you fail to make payments on your property that you used to secure a loan and the bank seizes it.
3. Bankruptcy
Bankruptcy is a legal process in which a person or business may seek relief from the debts they cannot pay. The type of bankruptcy you file determines how long it can stay on your credit report.
4. Charge-Offs
A bank or creditor may list your account as a charge-off when you have missed payments for 6 months.
5. Inquiries
Credit inquiries include soft and hard inquiries. Soft credit inquiries won’t stay on your credit report and affect your score.
Source: How Long Do Derogatory Items Remain on Your Credit Report?
Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get a no fax payday cash advance when they need it. Kimmy has over 20+ years' experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business.