Yet another bad credit question
Question: Once your friend gets them paid off, they drop : off his record in 3 years. So the faster he tightens his belt and goes : to work, the faster he’s out in the clear. : — You may want to check that period of time. I think it takes seven years for any bad credit to come off your report. The only recourse you have is to bargain with the company who reports and ask them to remove the black mark if you pay…
Answer: You’re right; most bad info. stays on credit records for seven years. But, as a matter of course, the credit card companies’ info. cycles every three years. A creditor can probably go back further if they want, but the ordinary credit report shows credit card & loan activity for the past three years, court activity for seven and only notes outright defaults (you never did pay, but they didn’t take you to court) beyond those limits. If you pay the credit cards off (albeit several years late) you should still be ok. That is, unless they’ve changed the credit reporting procedure in the last couple years.
One good way to look at it is to remember what a small fish you are to these big corps. Ultimately, if you come up with a plan to get out, and show yourself able and willing to fulfill the plan, they’ll be glad to not have to go after you. Of course, the BEST way is to not use credit cards AT ALL, at least not while you’re in school.
When I was in grad school, I lived on the things. Ten years ago, gave them up and haven’t yet encountered an emergency that couldn’t wait a few days until my next pay check (of course, I also live within my means.) Credit cards are not the key to the easy life; they’re the slippery slope to financial ruin.
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