There is nothing worse than having a black mark crop up on your credit report. Let’s face it, we all slip up from time to time and it’s often due to circumstances that are beyond our control. Whether you missed a payment due to unforeseen financial commitments, or have ended up with too many late payments that a black mark has been left next to your name, it can be extremely stressful.
It can make it much harder to take out a loan in the future, and leave you in an even worse financial position. What’s good to know is that it will eventually go away, but we do need to ask: how long does a black mark stay on a credit report?
What is a Black Mark?
Let’s take a look at exactly what a black mark on your credit report is, and how it comes about. Your credit report details all the information about your borrowing history in one place. You are given a credit score based on this information.
A high credit score means you are a reliable and trustworthy borrower while a low credit score may leave lenders unwilling to take a chance on you. Any black marks against your credit score will affect your chances of being able to take out a future loan. So where do these black marks come from?
The following is a list of things that will be noted on your credit report as a word of caution to future lenders:
• Defaults: if you have defaulted on any loans in the past.
• Missed payments: if you have missed payments from any of your current or past loans.
• Serious credit infringement: this relates to consumer overdue debts where a person owes a debt to a credit provider but has moved, or appears to have moved, from their last known address without paying that debt and without providing the credit provider with their new contact details, such as address.
• Court judgments: this refers to any court judgements that are passed down in relation to debt. This includes personal insolvencies or debt agreements or even bankruptcy.
• Credit enquiries: this is any applications you make to take out credit.
So, how long does a black mark stay on a credit report?
How long does a black mark stay on a credit report?
If you’re wondering how long a black mark stays on your credit report, unfortunately, the answer isn’t exactly straightforward. It really depends what the black mark is. Here is a quick rundown of what you can expect depending on your situation:
• Defaults: this stays on your credit report for five years from the date of collection by the credit agency.
• Missed payments: any missed payments on your loans, no matter what type of loan, will remain on your credit report for two years.
• Serious credit infringement: due to the nature of these infringements, they take much longer to leave your credit report. Most stay up to seven years if unpaid, and up to five years if they have been paid off.
• Court judgments: this often depends on what the case involved and when it was officially resolved. They often last from two to five years.
• Credit inquiries: these can remain on your credit report for up to five years. If you get rejected for a loan, it is best to wait a few months before applying for a new one to avoid this.
So now you have answered the question: how long does a black mark stay on credit report? You might be looking at any ways to fix this sooner.
Credit Repair
Black marks can only be removed from your report if they are actually incorrect. The first thing to do is to ask for a copy of your credit report and to go through each of the listings for accuracy. If you do notice a discrepancy, you can contact a credit reporting agency to have it removed.
Many people prefer to use a credit repair agency for this process to make things easier for them. Credit repair agencies are experts at spotting any incorrect listings and know the process involved in getting them fixed, which streamlines everything.
Get Help Today
If you are looking at having some incorrect black marks removed from your credit file, then speak to the experts at Clean Credit today. They will help determine if any mistakes were made and get your credit file back on track in no time.
Unfortunately, some black marks do just require time to get rid of, so in some cases, you just need to wait it out. The best thing you can do is change your financial habits to prevent this from happening again in the future. Look at how your black mark ended up there in the first place and put measures in place to ensure it doesn’t occur again. It is much harder to get a loan with a black mark against your name.