How do negative items on your credit report affect your score?
When you monitor your credit regularly, you can make sure that anything negative appearing on your report is accurate. Here's an idea of what these items are and the impact they have on your credit score.
Late payments can damage your score, depending on how late the payment was made, and how long it's been since that occurred. The later the payment was made, the more it hurts your score. However, its effect on your credit diminishes over time.
Typically, you would find out when an account goes to collections. But sometimes a bill can slip through the cracks, like an old utility bill sent but not forwarded after you've changed addresses.
Reviewing your report can help here: if you find an item that isn't yours, you can dispute it, and if it is yours, you can pay it. These items can stay on your credit report for up to seven years. As with late payments, the longer it's been on your report, the less it affects your score.
As a general rule, paid city, state and federal tax liens can remain on your credit reports for up to 7 years from the payment date. These items will negatively affect your credit score and only time diminishes their impact on your credit. Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company's policy.
Start by checking your credit report. If you believe any items on your credit report are inaccurate, dispute them with the associated bureau.
If items are accurate, make sure you've paid any overdue accounts. Then ask the credit bureau how much longer the item will remain on your credit report. In the meantime, maintain your overall good credit health by paying bills on time and using less than 35 percent of your available credit. And keep monitoring to watch your progress!
You are entitled to one free credit report annually. Click here for more information. This link also provides information on contacting the three major credit reporting agencies as well as other useful information concerning your credit. | 
