CHAPTER FOUR How to improve your credit score
• Positive information from open accounts can stick around indefinitely, but closed accounts age off your report after 10 years if the account was in good standing. • Most negative information stays on your report for seven years, including late payments, judgments, paid tax liens, charged-off accounts and discharged Chapter 13 bankruptcies. Chapter 7 or 11 bankruptcies and non-discharged or dismissed Chapter 13 bankruptcies may stay on your report for 10 years. • Hard inquiries stay on your report for two years, but only affect your credit score for one. • Unpaid tax liens can stay on your report for 15 or more years.
When working to improve your credit score, paying your bills on time and removing negative information is key. Negative information is anything that reduces your score: late payments, court records or high debt levels. We discuss how to dispute incorrect information and how to add positive information to your report on the following pages.
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