As time goes on, people are becoming increasingly aware of the importance of both their credit report and their credit score. These two pieces of information are essential tools for lenders, who use them to determine whether or not to grant a loan or credit to a consumer. Higher FICO scores and reports with positive entries tend to lead to credit or loans; low scores and bad entries have a tendency to lead to declined applications. While individuals may recognize the importance of credit reports, they may not be aware of what kinds of notations appear on the document or how long they stay there.



Although the credit score provides a quick summary of a prospective borrower's financial well being, it's the report that provides all of the information that lenders would like to see. Previous debts, vehicle loans and mortgages are recorded there, along with debt filings, tax liens and more. If you have a credit card, it is listed. If you had an automobile loan that you paid off five years ago, it is on your credit report, and the report will note whether you paid on time and completely.

Good notations on your credit report will include repaid bills, open credit accounts in good standing and closed accounts. Despite popular belief, good entries do not stay on your report forever. Open accounts remain on your report for as long as you hold them, with extra notations if you make late payments. Old accounts stay on your credit report for a maximum of ten years. After that, they are removed from the report.

Negative entries on your report will consist of things like unpaid income tax liens, bankruptcies, and unpaid auto loans or charge card debt. These are "red flags" that have a tendency to grab the attention of lenders pretty quickly. If you have a lot of negative entries and a so-so credit score, you may find it hard to obtain additional credit. On the positive side, bad entries disappear from your report after seven years, except for Chapter 13 debt relief filings, which stay for a full ten years.

The key to a solid credit report is always paying your bills in full and promptly. Prompt payment of your bills when they are due will also help you sustain a healthy credit score. If you have negative entries, they will fade away in a few years, but good entries from open credit card accounts can stay forever. It is worth your while to do your best to pay your bills promptly so that you might keep your credit report in tip-top shape.