How long are you stuck with bad credit from your past?

Accurate negative information generally can be reported for seven years, with some exceptions:

Any case of bankruptcy can be reported for 10 years.
   
Information reported because of an application for a job with a salary of more than $75,000, or for credit and life insurance worth more than $150,000, has no time limitation.

Information concerning a lawsuit or judgment against you can be reported for until the statute of limitations runs out.

Taking things in proportion and avoiding poor credit history

When you're starting out as a young parent and still paying student loans, you might encounter some financial difficulties which will set you back on your payments. Remember that others have been through similar stages and may have also experienced a phase of financial difficulty when starting out in life. So even if you do have a poor history, it might not carry as much weight as you think it would.  For example, when someone is deciding whether or not to employ you or give you credit, he or she may disregard dated information.  A poor credit report doesn't mean you are banned for life, so take the whole matter in proportion

Don't become anxious; just make a plan to improve your credit history for the coming years. If you need someone to help you out with such planning, you can always contact credit counseling services which offer advice for little or no cost. In addition, nonprofit counseling programs are sometimes operated by universities or credit unions. If you need help, these are the organizations and companies to contact.
 
Remember that even if you don't have negative info on your report, you should watch your monthly payments and credit balance carefully.  When you start a family, it's usually time to invest in a bigger house or car.  Don't let the excitement of beginning a new family distract you from watching your credit carefully when it comes to these purchases.  Monitoring your expenses and payments will help you avoid any unpleasant financial issues in the future.


 

Comments (0)

Subscribe to this comment's feed