Negative Information on a Credit Report

A bad credit history can limit a consumer's ability to take out a credit card, obtain a home loan, rent an apartment or buy insurance. Negative information on a credit report can even limit an individual's employment options. Individuals can improve their credit score by paying their bills on time and they can correct inaccurate negative information on their credit report.

Considerations

Negative information on a credit report usually includes any bills not paid within 30 days of the due date, with the credit score penalties for 60-, 90- and 120-day late payments increasing in severity. These bills commonly include car loans, credit card debts, mortgage notes and tax liens that the consumer does not pay on time. A company will report the borrower's delinquency to the three major credit bureaus, including Experian, TransUnion and Equifax, which take this negative information and add it to the borrower's credit report.

Time Frame

According to the Federal Citizen Information Center, negative information can harm a consumer's credit score for up to 15 years if the borrower owes a tax lien. Credit bureaus must remove most negative information from a consumer's credit report within seven years. Bankruptcies can stay on a report for up to 10 years and credit history inquiries, where an employer, lender or consumer pull a credit report, can show up for two years.

Information

According to the Federal Trade Commission, consumers have the right to view their Equifax, TransUnion and Experian credit reports for free at least once a year. Individuals can visit the Annual Credit Report website to view their credit history online, call 1-877-322-8228 to request a copy by mail or send in an Annual Credit Report Request Form by mail. Consumers will need to answer security questions and provide their address, Social Security number and date of birth to access their credit report.

Remedies

Under the Fair Credit Reporting Act, American consumers have the right to fix any inaccurate negative information on their credit report. Consumers can complete the dispute process online by visiting the websites of the three major credit bureaus or by sending a letter to a bureau by mail detailing which line of their credit report they dispute. Individuals should provide documentation supporting their position and the credit bureau must investigate claims within 30 days. After the credit bureau completes its' research, it will send the consumer a letter detailing its decision.