Everyone is aware that not paying your bills on time and things like bankruptcy are bad for your credit. What you may not realize however, is that the three major credit bureaus give different weight to various different kinds of debts and flaws within your credit report.
There are five different things that you should always avoid getting on your credit report, as they can be incredibly damaging and hard to get rid of when you want to repair credit fast.
Foreclosures
If you are unable to make payments on your home, then the bank will more than likely move into the foreclosure process, and attempt to sell your home to someone in the hopes of reclaiming their money. Once this happens, there is nothing you can do, and even if you manage to cut a deal and keep your home, the negative effects of not paying on time can harm your credit score as well. These detrimental processes take seven years to be removed from your credit report, and make it almost impossible to repair credit fast.
Bankruptcies
This is perhaps the single worst thing you could do to your credit. Bankruptcies stay on your credit for ten years, and can likely keep you from getting credit extended to you for any reason. This does seem like a grand idea when you are faced with debt that you can’t pay, but it should be stressed that if you want to repair credit fast, then you should avoid bankruptcies at all costs.
- Posted under: Loans
