Six Things to Avoid Showing on Your Credit Report

Any kind of active information that finds its way on your credit report can be detrimental to prospect of qualifying for credit in the future. However there are certain kinds of information that a lender gives more importance to than others.

Written of accounts

An account that has been written off by the lender means that the lender considers the account as uncollectible. The lender has given up all the hopes of recovering the money from the borrower due to the fact that the borrower has not made a payment regarding the lender’s best efforts. It also implies that the account has become late handling it was such a long period of time that pursuing it any further seems futile to the lender. Written of accounts stays on the credit report for a period of seven years from the date they are first reported as late. Lenders view written of accounts unfavorably as the displays the lack of effort on the part of the borrower to pay back the money that he borrowed.

Debt Collection Accounts

Consequently to lender writing on a particular account he may pass it on to a debt collection agency for the purpose of recovery or may simply sell the debt third-party debt collector. When this happens generally a new account is reported to the credit bureau as a collection account by the collection agency. Sometimes the original debt also updates the status of the account as having been passed for collection. This is a negative entry is it suggests that the borrower was unable to pay the amount that he borrowed initially forcing the lender to pass of the account to a collection agency.


Bankruptcy is a serious step to take in order to relieve you of debt. All the accounts that are included in the bankruptcy filing listed on your credit report. A bankruptcy record can stay on the credit report for a period of seven to 10 years. Although it is possible to start rebuilding your credit immediately after a bankruptcy is discharged it is equally difficult to get further credit till the record of bankruptcy stays on your credit report. Filing for bankruptcy implies serious financial trouble and to inability to pay your debt.


For closure is also a serious turn of events as far as the implication on the credit rating of a person is concerned. Foreclosure happens when a person is unable to pay off the amount due on the mortgage taken out for a home or other real estate property. Since a mortgage loan is considered to be of the most serious and important loans that a person is liable to take in his lifetime, being unable to pay it off, resulting in foreclosure can seriously damage your credit rating which could seriously damage the prospects getting new credit in the future specially for another mortgage loan. Foreclosure remains on the credit report for a period of seven years.

Tax liens

Tax liens are also part of information that is collected from the public records by the credit bureaus. When you do not pay property taxes on your home or another real estate property the government has the right to seize the property and option it off for the unpaid taxes. Even if the home is foreclosed because of the taxi and you are still responsible to pay off the mortgage loan. Therefore tax liens are extremely sensitive and negative information to have on your credit report. Tax liens also have a very negative impact on the credit report because they stay on the credit report for the longest period of time than any other reported negative data. Unpaid tax liens can stay on the credit report for a period of 15 years while paid tax liens will remain for a period of 10 years from the date of payment.

Judgments from Civil and Federal Courts

Another kind of information that is collected from public records is judgment passed by small courts and the federal courts pertaining to any matter that concerns credit. If the lender or creditor sues you in a court for money that is due to them and has a judgment that is passed in his favor then such an entry will find its way on your credit report. A judgment passed by a court will stay on your credit report for a period of seven years from the date of filing even after you have followed and satisfied the judgment.

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