Does a negative credit rating really stay on your report 7 years?
Long story short… before I started college my dad and I took out a line of credit at a local credit union. I received financial aid and didn’t need or use it. I was 18 at the time and my dad was the primary signer and I was an authorized user or co-signer. I had no credit at the time so this really helped me get credit fast and was able to get credit cards, other loans, etc.
Anyways. My dad was using the account to help build me credit. Well… he forgot to make two payments on it. Once in January and once in June. They were both 30 days late. Now because of the missed payments I have on my credit reports from the 3 major companies that this is a potentially negative report. The account has since been paid off and closed. Since I wasn’t the primary user will this really stay on my credit report/score 7 years? Both payments were small and in the -50 range. BUT Discover card got wind of this and decided to drop my line of credit with them about 1k even though it really had nothing to do with me. I explained that to them and because my name is on the account it effects me too.
Basically, will this stay with me for 7 years? My other 9 accounts are all satisfactory and in good standing; never late and always paid.
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August 10th, 2011 at 9:03 pm
Late notations stay on your report for only 2 years, not 7 years, not 10 years or any other years.
Your dad could try a goodwill letter to the CU and ask them to remove the late notations. Sometimes goodwill letters work and sometimes they don’t but it never hurts to try.
You should find the name of someone who is a higher up in the CU (the higher up, the better) and address the letter to that person, be sure to include that persons name on the envelope along with the CU address so it will go directly to them. If you just send it to the credit union without putting someones name, who is in a higher position, then a front line CSR will be the one to deal with it and they have no power to do anything with it except deny the request.
In the letter your dad should tell them that he enjoys doing business with them and explain the reasons why he was late, keep in mind just saying "I forgot" probably won’t be good enough. Then he should respectfully request that they be kind enough to remove the late notations from his and your credit reports.
Like I said earlier, sometimes it works and sometimes it doesn’t. If it does work then the lates will be removed. If it doesn’t work then the lates will be removed 2 years from the date of the late and at that point the account will move from a negative into a positive account.
August 10th, 2011 at 9:03 pm
Yes, it really stays for 7 years.
If you are a cosigner, then it has everything to do with you. It has as much to do with you as with the primary. For credit reports, there is no difference between a cosigner and a primary.
If you were only an authorized user and were not a cosigner, then you might be able to get it removed from your credit report.
August 10th, 2011 at 9:03 pm
Yes they do and some even stay longer like court judgments and bankruptcies (10 years). One slip up can hurt you for a LONG time.
August 10th, 2011 at 9:03 pm
Yes it does and then 10 years if you claim Bankruptcy ! A long time for such little mistakes for some people.
August 10th, 2011 at 9:03 pm
Yes this will stay with you for 7 years, there is no way around that. You were a signer on the account, the account went late, they assume you should have made the payment if the other person didn’t. It doesn’t actually matter at all on your credit score how much the payment was for, or even what the total loan was for (except in deciding your debt to income ratio).
This item will stay on your report for 7-10, the three year time span means they refuse to remove it the first 7 years, but then whenever they get to it over the next three years, at some point they will remove it. The only way around this is to write letters to the bureaus till they are sick of hearing from you and hopefully they will remove the item. This will take you hundreds of hours, but potentially might be worth it. Or you can pay a credit repair company a couple hundred dollars and have them take it off of your record.
Otherwise, its on there for 7-10 years.