A Guide for Paying Collections Debt
October 26, 2023
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LA credit repair experts might find numerous negative items that could damage your credit report. These blemishes on your record could prevent you from buying a car or house, or at the very least, prevent you from getting a good interest rate. It’s not as difficult as you might think to remove negative items from your credit report, and here are some of the top items we can remove.
Inquiries
When consumers shop around for new cars, homes, or credit cards, they tend to get a lot of inquiries. These can stay on your credit report for two years, unless credit repair experts remove them, and decrease your credit by ten points.
Medical Bills
Medical bills can be on your credit report longer than you think. It’s common for unpaid medical bills to be on your report for as many as seven years. However, it’s most common for them to be on your report for between six months to two years.
Collections
Each state governs how long collections agencies can attempt to collect money for unpaid expenses. Everything from credit card collections to insurance companies, utilities, and more can stay on your credit report for up to seven years.
Late Payments
It’s important to remove a late payment from your credit report. Late payments can occur for non-payment of auto loans, home loans, personal loans, student loans, and more. This negative item can remain on your credit report for as many as seven years and impact 35% of your credit.
Charge-Offs
A charge-off happens when creditors write accounts off for a loss due to non-payment. It’s best to remove a charge-off from a credit report because it can affect 65% of your credit and stay on your credit report for seven years.
Bankruptcy
Filing for Chapter 7 bankruptcy can impact your credit report for as many as ten years. Chapter 13 can stay on the report for seven years. Regardless of the type, you want to remove bankruptcy from your credit report as soon as possible since it can affect your score by as many as 150 points.
Repossessions
When you don’t repay a loan, the lender can take the items without providing you notice. And when this occurs, your credit score could take a 100-point hit and remain on the report for seven years.
Foreclosures
Foreclosures are difficult in every sense of the word, and they are even more devastating to a credit report. It can decrease your credit score by more than 100 points, while also affecting your debts owed and payment history.
Child Support
Late payments or collections for child support can impact your payment history and debts owed. Each situation is unique, but child support is a negative item you can expect to stay on your report for up to seven years.