A Little Info About Your Credit Scores
A credit score is a number generated by algorithms that is meant to predict credit worthiness. Scores range from 300-850. The higher the score, the more likely you will be able to get approved for financing. Interest Rates are often directly related your credit score. The high your credit score, the lower your interest rate will be. Therefore, having a high credit score will end up saving you thousands of dollars over the life of your auto loan, mortgage, or credit cards.
How Long Will Items Remain On my Credit Report?
- Delinquincies: A delinquency may stay on a credit report for 7 years from the date of the initial missed payment.
- Charge-off Accounts: A charge-off is an account that is sent to collections. This will remain on your report for 7 years from the original delinquency date.
- Collection Accounts: My remain on your profile for 7 years form the date of the initial missed payment leading to the collection. Even if it is later paid in full, it will be marked as a "paid collection" on the credit report.
- Closed Accounts: Closed accounts are no longer used for further use. Closed accounts may or may not have a zero balance. Closed account with delinquencies remain for seven years from the date they are reported closed. Delinquent items will be removed 7 years after the delinquency occurred. Positive closed accounts will be reported for 10 years after the closing date of the account.
- Bankruptcy: Chapter 7,11,and 12 we remain on a credit report for 10 years from the filing date. Chapter 13 will remain on a report for 7 years along with the delinquent accounts that are included in the bankruptcy.
- Judgements: Will remain on a credit report for 7 years from the file date.
- City, County, State, and Federal Tax Liens: Remain on credit reports for 15 years from the filing date. A paid tax lien will remain for 10 years from date of payment.
- Inquiries: Most inquiries will remain on a credit report for 2 years. All inquiries must remain on your credit report for a minimum of 1 year from the date inquiry was made. Inquiries that are pulled by you will not be reported on your credit report.