What are negative items in your credit report?

Negative items are various types of detrimental records that can impact your credit score. These negative items can remain on your credit report for up to 7-10 years or even longer, and they can have a significant adverse effect on your creditworthiness, particularly if you have a high credit score. Here is a brief overview of some common negative reporting items:

Tax liens occur when the government remarks that you have failed to pay your property or other taxes, leading to a negative impact on your credit report. Paid tax liens usually stay on your report for about seven years from the time you filed them, while unpaid liens can remain indefinitely.

Repossession happens when you have used assets like a car or property as collateral, and the creditor or lender seizes that asset due to non-payment. This negative item is likely to stay on your credit report for about seven years, starting from the date when you missed your payment for the first time.

Judgment or civil judgment refers to a debt you owe via the court, such as when your landlord sues you for missing rental payments. There can be two forms of judgment: paid and unpaid. Both unpaid and paid judgments may stay on your report for about seven years, but the court can extend the period if you don’t pay.

Foreclosure happens when you are unable to make your mortgage payments, leading to the forfeiture of your property rights. This negative item usually remains on your credit report for seven years from the date of foreclosure.

In the case of bankruptcy, court proceedings occur when the court gives orders to sell all your assets for recovery and discharge a debt. If it’s Chapter 13 bankruptcy, it stays on your credit report for about seven years, while Chapter 7 bankruptcy may last for nearly ten years. (Note: Chapter 10 bankruptcy may be a typo, and Chapter 7 is the correct chapter.)

If the creditor believes that you won’t be able to repay your debt, usually when you miss several payments, they may charge off or write off the account for taxation purposes. When you are late in making payments for at least 180 days, your creditor charges off your account. After that, your creditor has the right to sell it to a third-party agency for collection, which then tries to extract payment from the recipient. This negative item stays on the credit report for seven years from the first missed payment date.

Hard inquiries involve checking your credit report by a lender to determine your creditworthiness, usually when you apply for a new credit card or loan.

Late or missed payments are minor negative reporting items on your credit report that refer to your missed or late payments. The severity of this negative item may increase with every 30 days of delay in payment. It stays on your report for seven years, starting from the date you missed or made a late payment.


How does Xpedite 365 remove negative reporting items on your Credit Report?

The negative information on credit reports results in derogatory or negative items. These may include high balances, previous delinquencies, tax liens, repossessions, foreclosures, or other indicators that suggest you are unable to pay back your loan as per the agreement. These derogatory items can have a lasting impact on your credit report, remaining active for up to 7-10 years or even longer.

Xpedite 365 specializes in eliminating derogatory or negative items from your credit report before the standard seven-year period. Our process begins by identifying incorrect negative reporting items and working to remove them from your credit report. We submit disputes with credit bureaus or lenders to address any inaccuracies, which saves you time, effort, and money.

For accurate negative items, you may need to wait for their natural expiry. Alternatively, if you have a history of making past payments on time, we can send a goodwill request to your lender to remove them as a gesture of goodwill.

There are three ways to remove negative reporting items:

  1. Review your credit report to identify any inaccuracies.
  2. File a dispute with the credit bureau or the lender.
  3. Wait for accurate negative reporting items to expire.


What are Credit Bureaus?

Credit bureaus, also known as credit reporting agencies, are entities responsible for compiling data to create credit reports that provide information about your credit history to potential creditors or lenders.

What does each credit bureau do?

Credit bureaus collect data from various sources to compile your credit report based on your credit history. This information includes your personal data such as name, address, credit accounts, and more. However, your credit report does not contain information about your race, marital status, or age. When you apply for a loan or credit card, the creditor requests your credit report from one of the three credit bureaus. It is important to note that they can only provide your report to the creditor or lender with your permission.

When was each credit bureau established?

  • TransUnion started in 1968 and, by 1988, the company had credit profiles for nearly all consumers nationwide.
  • Equifax was established in 1899, and in 1965, it was declared a publicly held organization.
  • Experian was formed in 1826, making it the oldest of the three bureaus. Today, it operates across 37 countries.


Why is my FICO score different from each bureau?

FICO scores may vary among credit bureaus because each bureau has a different method of obtaining and scoring data. Banks, auto lenders, credit unions, retailers, mortgage providers, and credit card issuing companies report most of the data to these bureaus. However, creditors are not obligated to notify all bureaus of your information. As a result, your accounts may show up in one credit report from one of the bureaus and not appear in others. These variations in reported information contribute to differences in FICO scores across bureaus.

For more information or to fix your credit issues and accomplish a good credit score, get in touch with us at Xpedite 365. Our expert credit restoration services are here to assist you on your journey towards a brighter financial future. Contact us today to get started!


Ready to Get Started?