I used to have bad credit, and for the longest time, I thought it would always be there to put a kink in any financial plans I had. I fell behind on some credit card payments, and they were sent to collection agencies. And, strangely enough, I had unknowingly failed to pay a late fee on a movie that I returned.
For years, I was plagued by my poor credit history. I thought I would never be able to fix it or get approved for a car loan. But once I took control of my situation, I was able to rid myself of the negative financial marks that had been holding me back.
Send that Bad Credit Packing
In order to repair my credit, I had to learn how to manage my accounts better, and get access to my credit reports so I could see what the lenders saw. I had to be patient, as the results weren't going to happen overnight. During this process, I took the time to learn more about how long different bad credit situations can affect someone.
- Unpaid Debts and Collections
Any outstanding debts will remain on your credit report for seven years after you stopped paying on them. It's as simple as that. Once paid, the missed payments can remain on your report for up to seven years after you stopped making payments. However, the fact that you paid the account, even if it went to collection, will work in your favor.
If you filed for Bankruptcy, you are looking at a longer length of time that your credit will be, at best, questionable. A Chapter 7 will remain on your credit history for 10 years from the date of filing, while a Chapter 13 will remain on your history for 7 years from the filing date.
Avoid the Pit of Debt
By ensuring that you keep up with all of your payments and using your credit responsibly, you can show that you have learned from your past missteps and are ready to move forward as a reliable borrower in the eyes of lenders. Also, check your credit reports regularly to ensure that all of the information that lenders see is accurate. You can get a copy of your credit report from each of the three agencies for free once every twelve months.
Don't Let Your Bad Credit Haunt You
If you are still recovering from bad credit, a car may still be in your future. Auto Credit Express can help. They helped me get into the reliable car that I needed when no one else could. Just fill out the simple and fast online application today.