How Long Do Collections Stay On Your Credit Report?

We are in the middle of a financial crisis, when the employees have problems in paying the salaries and there is no perspective of getting better. In this complicated scenario, the Credit Bureau is considered the bad wolf from the fairytales. However, this time it is real and it can affect your life significantly.

The Credit Bureau is an entity founded that the initiative of the banks that offers a consultative database where the banks and other financial institutions can find information about the credit history of different clients. As we are talking about a database, the government regulates its functioning process. Nobody is allowed to obtain information from here without your expressed approval. On the other hand, you can’t apply for a credit if you don’t allow the bank to make this interrogation in your name. Let’s see how your credit history affects you.

There are three major types of delays: short, medium and long. The short delays are those of less than 30 days that are not even recorded with the Bureau. The medium delays are those of 30 to 60-90 days, and the severe delays that are over 180 days.

The short delays must not be recorded. Some banks have automated systems that will report you even if you have shorter delays. In this case, you should contact the bank. Prove that you have paid your debt in time, and ask them to delete the record. Keep in mind they are obliged to do so, and if this problem affects you in any way, you are entitled to request compensations.

The medium delays are delicate. While the majority of banks will allow you to take a credit in this case, the maximum allowed sum is decreased. We can’t tell you when the records will be deleted, as it depends on the severity of the problem. A 35 days delay could be erased after one year, while a 175 days delay will surely be on your record for 4 years and even more.

If you have a delay that lasted more than 180 days, you could say goodbye to a credit or card for 4-7 years. Some banks are willing to delete even those records, but you will need solid proves about your good will and paper to prove you were unsolvable at that time. However, don’t out too many hopes into this, as usually the banks are not willing to delete such records.