The 5 most common negative items found on credit reports can be really damaging to your credit score if they aren’t removed. Let’s find out what they are?

1. Collections

Creditors may stop trying to collect a debt, but they do not give up completely. A collection agency is frequently assigned to your past-due account. The agency either takes a cut of the money collected or buys the account entirely. Paying down the debts isn’t going to make the item go away. It might stay on your credit reports for a longer period of time than you’d prefer.

2. Late Payments

This is one of the most popular negative items. When you’re 30 days late on a payment, they’re typically reported. Even if you catch up and pay the past due amount, it will remain on your credit report for up to seven years.

3. Hard Inquiries

You’ve probably heard them called “hard pulls.” When lenders or creditors pull your credit report before making a financing decision, this happens. If you’re applying for a mortgage, a loan, or a credit card, you’re likely to encounter them.

4. Bankruptcy

You declare that you are unable to repay your obligations in this federal judicial process. If you declare bankruptcy, you may believe that all of your past-due bills would be deleted. That is not the case. Those accounts will continue to exist, and they will all be linked to the bankruptcy.

5.  Repossessions

When you take out a loan on something you own, such as a car, that thing becomes collateral. It’s the loan’s collateral. Repossession is a way for a lender to reclaim lost income due to non-payment. When this happens, the lender takes possession of the property, and you no longer own it.

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