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Money 101  >   Credit Score   >   How Long Will a Bad Credit Entry Last on Your Report?

schedule 5 min read | March 16, 2025

How Long Will a Bad Credit Entry Last on Your Report?

Written by Daniel Azzoli

Like finding a stain in an otherwise pristine piece of linen, seeing a derogatory mark on your credit report can be frustrating. Depending on the entry, you may be able to work around it. Or you may not. Sometimes, there’s no way to fix a bad entry on your report, no matter how much you wish it were false.

As a general rule of thumb, most derogatory entries last for seven years. But as you’ll find out today, there are some exceptions. Take a look at the list below to find out how certain entries may negatively affect information in your credit report.

1. Hard Inquiries

If you’ve applied for credit in the past, you may already have a hard inquiry on your credit report. A hard inquiry (or a hard credit check, as it’s also known) allows some financial institutions to assess your creditworthiness and your ability to manage new credit.

A hard inquiry shows up on your credit report when a financial institution does a hard credit check. This means that your report will show a hard inquiry, even if you don’t get the loan.

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How do Hard Credit Checks Affect your FICO Score?

A hard inquiry can generally lower your credit score by less than 5 points. It can stay on your report for two years but will typically only impact your score for the first 12 months.

Does checking your credit score lower it? Well, if you decide to check your credit score on your own, this is considered a soft check (or soft inquiry) which won’t impact your score.

2. Late Payments

Paying your bills on time every due date is one of the best ways to impact your credit report. This is because your payment history takes up the largest portion of your score. This is dependent on a few factors, including whether the company you’re paying reports payments to a credit bureau.

Graphic explaining what impacts your credit score.

But anyone who’s lost track of the date knows it’s not always easy to do. It’s even harder when money is tight and circumstances make it difficult to scrounge up the money you need in time.

How do late payments affect your credit score? Your score will likely take a hit once you move past 30 days, however, and the damage can worsen for every additional 30 days you’re late.

A late payment can stay on your report for up to 6 years. This mark will remain there even if you catch up on your payments, never pay late again, or close the account.

3. Charge-offs

A charge-off is what a late payment may turn into if you fail to pay your bill for 180 days or more. If a bill goes unpaid for this long, the lender may declare your debt as a loss for the company, report the negative information on your credit report, and/or continue to try to collect the money you owe.

4. Collections

If lenders or credit card companies determine that they’re unlikely to recover the debt, they may transfer or sell it to a collection agency.

If your account activity shows that your account goes to a collection agency, you’ll no longer owe the original lender that you opened the account with, but will instead owe the collection agency that takes over the debt.

Generally, collections apply to unsecured debt like installment loans, personal lines of credit, and both old or new credit card accounts. Unsecured financing options aren’t backed by collateral.

Check out this article to learn more about the differences between unsecured and secured loans!

5. Repossessions

A repossession is another potential outcome for delinquent payments. It may happen if you fail to repay a secured loan.

A secured loan is backed by collateral that the lender can seize if you default on your loan. They have the right to take this collateral — or in other words, repossess it — and sell it to recover the outstanding balance depending on your delinquency and the terms of your agreement with the lender.

Collateral will generally be a valuable asset that you own, like a house, jewelry, future wages, and vehicles. Failing to make your loan payments for months puts you at risk of losing that asset and can also impact your credit score.

A repossession will stay on your credit report for up to 7 years, starting from the date the account first became delinquent.

6. Foreclosures

Another potential result of a delinquent account is foreclosure. A foreclosure typically applies to outstanding mortgages, and it works similarly to a repossession — only that the collateral in this case is your home or business property. Like most of the bad entries in this list, a foreclosure can impact your credit score.

7. Bankruptcies

Last but not least on our virtual tour of bad credit entries is bankruptcy. It’s one of the worst possible derogatory mark you can have on your report. As it seriously hurts your chances of improving your creditscore, you’ll want to do everything in your power to avoid it.

A bankruptcy is often a last resort when your debt has accumulated to the point where you can’t pay your bills, and you don’t see your circumstances changing anytime soon. It involves petitioning the courts to liquidate or restructure your debt.

The outcome depends on what type of bankruptcy you file, with the two most common being Chapter 7 and Chapter 13 bankruptcy.

Chapter 7: If you successfully file for Chapter 7 bankruptcy, you’ll strike most unsecured debt from your record. This may include selling some or all of your assets.

Chapter 13: This option is for people with reliable income. It involves reorganizing your debt and setting up a modified repayment plan which may last up to five years.

Generally, if you file for Chapter 13, it will stay on your credit report for 7 years. However, Chapter 7 bankruptcy typically lasts for 10.

Impacting your Credit Score Over Time

Bad credit may feel like a monkey on your back. But don’t lose hope. Eventually, negative items may drop off. In the meantime, it’s important you lay down good examples of credit. Working on filling your report with positive account activity and other good credit habits may improve your chances to impact your credit score. Learn more about why it's important to check your credit score here.


Disclaimer: The information contained within this article, including any references to companies or products, are for informational and educational purposes only and are not a substitute for individualized financial and/or legal advice. We are not a credit repair organization as defined under federal or state law and we do not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit. We make no representation that we will improve or attempt to improve your credit record, history, or rating through the use of the resources provided through the FreshStart Blog or CreditFresh website. The views and opinions expressed by any guest contributors, as applicable, are solely those of the author and do not reflect the views of CreditFresh.

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