Credit report questions

Question

In college I got a little out of control with credit cards, and had 3 cards that went to collection agencies. Since then (about 2-3 years) I have paid off the balances, and opened a new card that I make regular payments on. I just reviewed my credit report and the cards that were sent to the agencies were listed as "negative items" (not surprising). However, it said they are "scheduled to continue on record" until 2012 or 2013. Does that mean this will affect my credit until then? The balances have been paid off for sometime. Having these appear on my credit report for 8 years seems excessive; I thought it was something like 3-5 years.

As I get closer to 2012, will they at least affect my credit less negatively? Also, compared to the 3 accounts in negative standing, I have 16 in good standing (new card/student loans). How badly is this going to affect my credit?

Answer 1

Per the Fair Credit Reporting Act derogatory accounts show for 7-years from the date of first delinquency which works out to 7-years and 180-days nothing resets this time line.

As far as your score goes yes it will affect it but over 90% of your score is based on the last 24-months of activity so the older they get the less affect they will have.

Answer 2

Their are lot of websites offering free credit reports  . you can try them .

(link in the source can help)

Answer 3

Unfortunately, it has to stay on your report for 7 years (at least-- some things, usually pertaining to the government will stay on longer)  Keeping "negative" things on your report for 7 years is to protect you and to protect the credit companies.  They do not want to keep giving you excessive credit that you cannot handle correctly.

The fact that the balances with the collections agencies are PAID OFF is a very, very good thing and does show up on your credit reports.  

I'm honestly not sure how everything affects the score itself.  However, I do know when your credit is looked at, it's a big deal that the negative things were a few years ago and that they've been paid off and resolved.  It also looks very good that you have 16 in good standing.

After the 7 years is up, your credit score/report will improve as well.  Just keep continuing to pay the accounts you have open now, and don't pay anything late.  You'll eventually have an impeccable score if you continue on with good habits.  Everyone makes mistakes in the beginning!

Answer 4

There are only 2 things that will follow you around for the rest of your life; your reputation and your credit history.  Always try to behave accordingly.

You shouldn't really have more than 3 open credit accounts.  House, car, and student loans are a little different but also have an impact on your credit rating.  So make sure you always pay on time and try to pay off early if you can.  

Answer 5

Bad debts stay on your record for 8 years since the last activity.  While they will affect your credit score, you really won't know how much until you get your score.  It might be a decent investment to pay the fee to get your scores from the three reporting agencies (only your credit report is free, the scores are proprietary and cost $ to access).

Answer 6

The negative items will remain on your credit report until you take proactive steps to get them removed.  You might want to use credit repair to get those items off permanently.  Check out the free evaluation form at the source website; they can help.