Derogatory or negative information can remain on your credit report for up to 10 years and create bad credit. It is a long time for a mistake(s) you made or financial hardship to negatively impact your credit report and ultimately, you. When using credit, always remember your goal to live independently; credit needs to help you achieve it, not block your goal.
In Step 1 of The Guide, you learned about the challenges of searching for affordable and accessible housing in D.C. Bad credit stops landlords and mortgage lenders from approving rental and mortgage applications. You do not need credit issues to complicate an already challenging housing search. You can change bad credit to good by implementing some of the abovementioned strategies.
Also, as a preventative measure, you should know how long derogatory (negative) information stays on your credit report. The table below shows why it is necessary to manage your credit; if not, mishaps can follow you for a decade.
| Credit History |
Timeframe |
| Late Payment | 7 Years |
| Account in Collection | 7 Years |
| Charge Off | 7 Years |
| Inquiry | 2 Years |
| Chapter 7 | 10 Years |
| Chapter 13 Bankruptcy | 7 Years |
| Foreclosure | 7 Years |
| Eviction | Not reported |
| Debt owed from an Eviction and sent to collection | 7 Years |
It is important to know that negative information reported to the credit bureaus remains on your credit report for the timeframes listed above, even after the debt is paid unless it was an error.
If you want more information on credit or assistance with improving your credit, contact a HUD-certified housing counselor for free credit counseling.