A credit report provides a snapshot of a persons ability to manage credit over time. The report includes most revolving credit lines, automobile loans, home mortgages, student loans and other debts. Information such as bankruptcies, tax judgments, and other public records may also appear on the report.
Derogatory Accounts
An account may be indicated as derogatory at any point that it has a delinquent credit history. An account that is 30 or more days past due, or that is a repossession, has been placed for collection, written-off, foreclosed or included in bankruptcy is considered derogatory. A creditor can also use certain codes in the narrative section of the credit report that are classified as derogatory. These include remarks such as account placed for collection or account placed for garnishment."
Historical Delinquencies
Historical delinquency may also cause an account to be considered as derogatory. The credit reporting agency may consider the number of times that the account has been 30 days, 60 days or 90 days past due over the previous 24 months. The credit report will also indicate the greatest delinquency in past due payment over the life of the account.
Public Records
Certain public records, such as bankruptcies and tax judgments, are considered derogatory items. Negative public record items often have a significantly adverse effect on the overall credit score.
Statute of Limitations
Federal law governs the length of time that negative items remain on a credit report. Most negative accounts, including collections and charge-offs, must be removed from the report after seven years from the last payment date. Paid tax liens, civil suits, and civil judgments also appear for seven years from the payment or judgment date. Bankruptcies are removed from a credit report 10 years from the date of discharge.
0 comments:
Post a Comment