Everyone makes mistakes, and sometimes those mistakes are financial in nature. If your money errors have led to accounts going into collections, auto repossession, foreclosure or bankruptcy, you may be wondering just how long these marks will remain on your credit report.

Bad Credit Isn't Forever

Even the most ruined credit can be repaired, but it does take some effort, and the damage can't be reversed overnight. Certain items will remain on your credit report for a set amount of time, but you can start to improve your rating even while you are waiting for these items to fall off.

  • Chapter 7 Bankruptcy: These bankruptcies can legally be reported for up to ten years from the filing date (not the discharge date).
  • Chapter 13 Bankruptcy: With this type of bankruptcy, the major reporting agencies (Experian, Equifax and TransUnion) will voluntarily remove it after 7 years have passed from the date of filing. Keep track of the time, and double check your report to make sure that this truly does happen.
  • Tax Liens: These marks are unique in that they will never fall off your report until the associated unpaid balances are settled. After you've paid your lien, this item will be eliminated 7 years after the balance has been settled.
  • Collection or Charge-Off Accounts: Documentation of these events drops off 7 ½ years from the date that the original account first fell behind.
  • Other Negative Information: Even late payments can show up on your credit report as negative marks, and it takes 7 years for these marks to go away.

Reclaiming Your Good Credit

If you have had trouble managing credit, you may be reluctant to ever use credit again. However, credit avoidance will do nothing to improve your credit health. Bad habits can be changed, and when you have paid down your existing debt, it would be wise to slowly start using credit again, being careful not to make the same mistakes that brought your score down to begin with. An easy way to begin again with credit is to apply for a secured credit card and eventually transition into a regular credit line.

Getting Back on the Road and Back on Track

If you are trying to build or rebuild credit and are in need of reliable transportation, an affordable auto loan can get you behind the wheel and on your way to financial freedom. And regardless of what your credit currently looks like, Auto Credit Express can help you get the perfect financing for your situation.

Just fill out our fast and secure online application to get started today.