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Types of Bad Credit Marks on Your Credit Report

If you are like a growing number of men and women in the world today, you are becoming more concerned about your credit history and your credit report.  In this regard, you may be interested in learning more about your credit report, specifically about the types of bad marks that can be found on your credit report.  Through this article, you will be provided with a brief overview of the types of bad credit marks that can be found on your credit report.

Late Payments

One of the most prominent and common bad credit marks on a credit report is that of the late payment.  Late payments tend to riddle a credit report and can have a profound effect on a credit score.  However, this is a problem that is pretty easy to fix.  By making payments on time from the present date forward, the problem of late payments being bad credit marks on a credit report can be rectified.

Collection Accounts

Another of the very serious types of bad credit marks on a credit report are those accounts that have gone into collection.  Collection accounts significantly contribute to the lowering of a credit score because they represent accounts that were so seriously past due that they were sold to a collection agency for further action. 


 


Charge-Offs

Charge-Offs are also significant bad credit marks within a credit report.  These are accounts that are so delinquent that a creditor simply has given up and has written of the debt as a loss.  There can be a spot of hope in regard to chare-offs, however.  If the charge-offs involve medical bills (for example) and not revolving credit, an institution considering making a loan to you for a home or a car may penalize you as harshly for medical bills that were charged-off provided revolving accounts have a positive history on your credit report.

Judgments

Judgments are extremely serious bad credit marks.  The send the message, in many instances, that you have been so careless or unable to deal with your debts that creditors have to sue you over them.  Of course there are other types of judgments beyond debt cases … but none of them send a positive message to potential creditors. 

Tax Liens

Depending on the amount of money involved, tax liens are moderate to significant bad credit marks on a credit report.  If all other aspects of a credit report and credit history are positive, the net effect of certain tax liens may be limited.

Bankruptcies

Of course, a bankruptcy is a negative credit experience.  It does result in a bad credit mark on your credit report.  However, different creditors have different responses to bankruptcies.  There are some creditors or lenders that will not do business with you if you have a bankruptcy.  However, that is not always the case.  Some potential lenders view a bankruptcy as leaving you in a position with less debt to be responsible for and you cannot file for another bankruptcy any time soon that will protect a lender for a bankruptcy stay preventing collection on a debt. 

How Long Will Negative Marks Remain on My Credit Report?

There is some variation between how long different types of bad credit marks will remain on your credit report.  Generally speaking, however, you can anticipate that a typical bad credit mark on your credit report will remain on your credit report for a period of approximately seven years unless the underlying bad credit problem that caused the mark is rectified.