How Long Do Public Records Stay on Your Credit Report?
Posted: Feb 13, 2020
If you don't have much credit history, or have some negative items on your report, raising your credit score can take a fair amount of time and effort. Especially if there are public records present, you're probably wondering why they impact your score so greatly and how long they're going to stay there. Understanding every aspect of your credit report is a great start if you want to raise your score, so here's what you need to keep in mind.
A Lengthy History
There are no two ways about it: Public records remain on your credit report for seven to ten years. Surely, if you've paid off a public record, this means that it's removed from your credit report, right? Wrong. Unfortunately, even if you've squared away any past-due accounts, the negative information will still stick around. There are numerous types of public records and each and every one of them can have a detrimental impact on your financial health. Common negative public records include filing for bankruptcy, defaulting on loans, failing to pay your taxes in a timely manner, foreclosing on a property, and even being involved in a lawsuit that had a direct impact on your finances.
Naturally, these can all have an adverse effect when it comes to signing a lease, applying for a loan, or being subject to a background check. This can impact you no matter where you live or what services you're seeking. If you are seeking loans from Texas private money lenders, your credit report can have a greater impact than you might think. You can visit Bay Mountain Capital at 3710 Rawlins St #1390 in Dallas, TX 75219 or call (214) 953-3188 to discuss your options.
It's never enjoyable when you're halfway through a rental application and realize that a negative listing from six years ago is coming back to haunt you. So, if you're stuck with a negative listing or information on missed payments, what can you do?
Credit Report Relief
In some cases, you may qualify for relief. Frequently, these negative listings can crop up by mistake. Other times, certain public records cannot be properly verified. If either of these situations applies to you, there may be some steps that you can take to remedy the issue. The three major credit bureaus, Equifax, TransUnion, and Experian have begun removing unverifiable records from the accounts of an estimated 12 million credit reports.
On top of this, these unions have started incorporating stronger verification measures. That means that your records need to contain several pieces of key information, including your name, address, and date of birth or Social Security number. For many, there are numerous older records that fail to include all of the required information. As a result, the credit bureaus are removing these records from credit reports across the nation.
Sometimes, the bureaus don't catch everything. This is why it's important that you check your public records frequently to ensure that the information listed is correct. If you spot any discrepancies, your best course of action is to file a dispute. If you have proper documentation and records or billing statements that support your claims, it's likely that the negative record will be removed from your report. However, not every dispute is resolved favorably so you need to go into the process knowing that an undesired outcome is possible.
It's incredibly important that you keep your finger on the pulse of your financial health. Regularly monitoring your credit report is only part of the equation, however. Continue to make payments on time and always keep your credit utilization low. Even if you're subject to a negative record, there are steps you can take to mitigate the impact it has on your life.
A freelance writer with a BA in English from Sarah Lawrence College.