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Delinquent debt on your credit report
Posted on Aug 29, 2008 by Tom Fragala
How long do delinquent debts remain on credit reports in the U.S.? Seven years. How long do Chapter 7 bankruptcies remain on credit reports? Ten years.
Does paying off a delinquent account require the derogatory marks to be removed from your credit report? No. If the debt is in collection, it's may be possible to negotiate with the debt collection company to have black marks removed. I'd recommend negotiating for that up front, as part of your deal to close out the debt. It's doubtful that the original creditor would ever listen to your request if they already sold your debt to the collector. If debt is not in collection, then negotiate with your creditor to have the derogatory data removed as part of your payment deal. In all cases, I'd expect it will be quite difficult to accomplish, however.
Will delinquent debt reduce your credit score? Yes, it will definitely cut your credit score. 35% of your credit score is computed using your "payment history" which includes amount of delinquent debt, length of time past due or in collection, number of items delinquent, and how recent.
Filed under: Credit
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