Do you know how long bad credit affects you?
June 15th, 2010In this country is very important to maintain good credit, but even more so to know how long it will affect your credit history does not care. Negative public records, for example, lost lawsuits, tax liens and child support cases (Child Support), remain on your credit history for 10 years and if for some reason does not pay, such debt may be extended up for 10 years. A bankruptcy is usually what most affects your credit because you can not erase from your record for 10 years.
The most common are called “collections” which are nothing other than the collection of debts, are paid or not, these last 7 years, thus affecting your credit. On the other hand, if not paid, some companies will not eliminate and may even extend up to 7 years.
For the sole fact often apply for credit to any company, your credit may be affected and the revisions are recorded in your report for up to 2 years. Importantly, banks that lend for mortgages, has restricted the extension of credit if the customer report has some quirks as late payments or a low score.
Tips for good credit
Pay your bills on time, but follow a pattern of payments. For example, put in a folder payments day 1 to 10, make another folder in the 11 to 20, and the last folder in the 21 to 31. Send payment one week before they expire in that order, this will let you know the credit bureaus that you are an organized person and help you increase your credit score.
Know that each pay one month ago is a point. Divide a two-part payment would help him get two points on a payment. For example, if you send a payment of $ 50.00 on the 20th of each month, choose to do one of $ 25.00 the 1st day of the month and another $ 25.00 on the 15th.
Use only 30% of their available credit accounts. Remember that if you spend 50% of your credit will begin to decline.
Try to report new accounts to credit bureaus.
If you have enough credit find a relative or friend “responsible” that serves as a guarantor (cosign).
If you are establishing credit, it is preferable to do with something that is worn continuously and will make their payments each month, for example, household utilities such as gas and electricity, or at your favorite store, the credit bureaus observe in detail how it responds to these payments for 6 months and if you prove to be responsible, this will help you improve your credit.
