These Things Will Destroy Your Credit Report


Every time you miss a payment your creditor will report this to the credit bureaus and the information will be included on your credit report. Your credit score drops each time a missed payment is added to your report. When you miss your payments for 6 months or more, your creditor will report your account as not collectible. Your account will be written off by the creditor and your credit report will contain a “charged-off” account. This type of negative information will drag down your credit score and make it harder to rebuild your credit. Furthermore, a charge-off’s roll off period is 7 years, which means your credit score will be affected by this information for a long time.

Collection Agencies

Aside from having a lower credit score due to a charge-off account in your credit report, you will also be subjected to harassment from the collection department of your creditor, or from a third-party collection agency. Imagine getting calls at the most inconvenient times and screening your calls before taking them just to avoid talking to collection agents.

Foreclosure status

Another negative piece of information that has a 7 year roll off period is a foreclosure. This happens when you default on your mortgage loan. The lender will repossess your home to sell or could auction it off to recover the amount of the mortgage. Having a foreclosed home can severely damage your credit rating and can lead to limited options for new credit in the future.

Tax liens

No one is exempt from paying taxes, so when you don’t pay property taxes on your home, the government will seize the property and sell it to cover your unpaid taxes. In cases that the foreclosure of your home was caused by a tax lien and you still have an outstanding mortgage loan balance, you’ll be liable to pay the mortgage loan in full. Unpaid tax liens are very devastating to your credit rating, and will continue to be so for 15 years. When you have paid your tax liens, the roll off period shortens to 10 years.

Judgement and Lawsuits

Creditors doesn’t usually sue a consumer for a debt, but there are some that do. This happens after all collection attempts were made and you still haven’t paid your debt. If a judgement is entered against you and in favor of the creditor, the negative information will remain on your credit report for 7 years.


Although filing for bankruptcy enables you to legally remove your liability for some or all of your debts, this option is a last resort. The bankruptcy information will remain in your credit report for 7 to 10 years. The accounts that were included on your bankruptcy filing will be reflected in your credit report.

Continental Finance is one of America’s leading marketers and servicers of credit cards for people with less-than-perfect credit. Learn more by visiting