Have you made financial mistakes in the past that you’d rather forget about? Well, don’t worry – most negative markers will be wiped from your credit report after 6 years (or 72 months).
Negative marks, such as missed payments, unpaid CCJs, and even debt solutions like an IVA or DRO, will stay on your credit report for 6 years.
For example, a missed payment from 5 years and 11 months ago will drop off your report in just one more month. Similarly, CCJs and debt solutions such as IVAs or DROs are also removed after 6 years, as long as the debt has been settled or completed.
While most negative marks disappear after 6 years, some information could stay on your report longer if you've continued to miss payments toward bankruptcy or IVA orders.
The 6-year period aligns with the time frame for how long certain negative marks stay on your credit report. This period begins from the date of the event (not a calendar month or year). So, any negative marks, like a missed payment or a CCJ, will remain on your report for 6 years from the date of the occurrence.
Once a negative mark has dropped off your credit report, lenders cannot see it, which may increase your chances of getting approved for credit.
This can be a great opportunity for people who may have struggled to secure credit in the past due to older financial mistakes. However, make sure that you haven’t had any further negative marks since then.
Additionally, your credit score may improve once these marks are removed, as long as no other negative events have occurred.
You can check your credit report to see if a negative mark is due to drop off soon. Be sure to check your credit report with all three credit reference agencies:
Checking your credit report regularly helps you stay informed about your financial standing and gives you the chance to spot any errors or outdated information.
Eligibility checkers have become more popular and are now offered by many lenders. These tools allow you to check whether you're likely to be accepted for credit before applying, without impacting your credit score.
Using an eligibility checker means no hard credit search will be performed, so your score won't be affected. If the eligibility check shows you're likely to be accepted, you can apply with confidence.
If you get a "no", don't be discouraged. Work on improving your credit rating in different ways and try again in the future.
Lenders report new information to credit reference agencies (CRAs) every 4 to 6 weeks, but this can vary depending on the lender and the type of credit product. Some lenders may report more frequently, so it's important to stay on top of your credit.
Also, each CRA may have slightly different data. This is why your credit score can vary between agencies. For example, Experian may have information that Equifax or TransUnion does not.
Positive information can boost your credit score, and negative information can harm it.
Making timely payments on loans, credit cards, and utilities can improve your credit score. Paying off debts or reducing balances on credit cards also has a positive impact. On the other hand, missing payments, making multiple credit applications (even if rejected), and having CCJs awarded against you will negatively affect your score.
Buy Now Pay Later services like Klarna, Clearpay, and PayPal Pay in 4 have become increasingly popular, but many customers don't realise they can affect credit scores. Since 2022, major BNPL providers have begun sharing data with credit reference agencies.
Missing BNPL payments can now harm your credit score, while on-time payments may not always help improve it. Unlike traditional credit, BNPL often doesn't assess affordability thoroughly, potentially leading consumers to take on more debt than they can handle.
Try setting up Direct Debits for BNPL payments to avoid missing them. Remember, multiple BNPL accounts can signal financial difficulties to potential lenders.
If you're looking to improve your credit score, here are some actionable tips:
The 6-year rule for negative marks is a great opportunity for those who are working hard to rebuild their credit. If you’ve had financial difficulties in the past, be patient – these marks won’t last forever, and they will eventually drop off your report.
It’s also important to keep working on your credit score in the meantime. By paying your bills on time and reducing debt, you can improve your financial situation and increase your chances of getting approved for credit.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
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