How Credit Reports Ruin Your Life (cont.)
Contributed by Kristy George
How long does negatives stay on your credit report?
If you do not pay a credit card account for several months it may result in a charge off. Charge offs are negative reports on your credit report showing you did not pay back credit loaned to you. These can stay on your credit report for seven years. Some credit card companies sell your account to outside collection agencies after months of no pay. This will show on your credit report as "sent to collections". This will also affect your credit report.
Bankruptcy
Bankruptcy is another option people choose who can not repay all the credit that has been issued to them. Bankruptcy also remains on your credit report for at least seven years. There is also usually attorney fees involved with filing bankruptcy. This is usually a last alternative for most people. You will more than likely not get anymore credit extended to you with a bankruptcy on your credit report. This means no more credit cards, student loans, car loans, or house notes until the bankruptcy is cleared from your report.
Rebuild your report
The only way to help rebuild your credit is by catching up your accounts to help your credit score. Start paying monthly payments til you are caught up. Try to contact the companies you are behind with and work out an arrangement for payment. Close all accounts you are not using. Pull your credit report frequently to see that it is being updated correctly and there is no false information on it. Above all else, remember credit makes the world go around and a bad credit report can ruin your life.
