MGR 96 – Fear and Loathing of Negative Credit Reporting
March 17, 2015
Double your pleasure with two questions about credit reporting as Gene and Jay explore
- Will a bankruptcy hurt my credit score?
- How long does negative information stay on my credit report?
The Federal Reserve dropped a bombshell by releasing a major report comparing credit scores of people who filed for bankruptcy against those that did not. In fact, as little as one month after filing showed an increase in your credit score. Does that make sense, or is is against common sense? Gene and Jay dissect the report and discuss the real reason why filing for bankruptcy may be the best thing to ever happen to your credit score.
Speaking of credit scores, the bankruptcy is still considered negative. There are lots of different types of negative information, all of which can make an impact on your credit record.
Different things stay on your credit record for different amounts of time. Here’s a breakdown:
- Late payments: 7 years
- Bankruptcies: 7 years for completed Chapter 13 bankruptcies and 10 years for Chapter 7 bankruptcies.
- Foreclosures: 7 years
- Collections: Generally, about 7 years, depending on the age of the debt being collected.
- Public Record: Generally 7 years, although unpaid tax liens can remain indefinitely.
But the real question is how long the negative information impacts your credit report. For Jay’s thoughts on the matter, listen to the show. But first, watch Eddie Murphy explain it (NSFW):