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Does Bad Credit Last Forever?

Written by Posted On Monday, 12 September 2016 17:48

There’s no sugar coating it: Going through foreclosure, bankruptcy or debt collection is unpleasant. When going through financial problems, it may seem like things are far from getting better, but having a few bad marks on your credit history doesn’t mean you’ll never bounce back.

Eventually, negative items will age off your credit report, but you don’t have to wait for a clean slate to rebuild your credit standing. Seven or 10 years feels like a very long time, and it is, but keep in mind there is a light at the end of the tunnel. You can start seeing improvements sooner, if you start working on it.

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Bad Credit Doesn’t Last Forever

Most negative information stays on your credit report for seven years (bankruptcy may remain on your report for up to 10 years), and depending on what the tradeline is, its effect on your credit may diminish even sooner.

For example: After a year, a late payment won’t hurt your credit score as much as it did when it first showed up on your credit report. Another year goes by, and it matters even less. On the other hand, things like debts in collection, foreclosure and bankruptcy are considered more serious indicators of risk.

While it means it may take longer to rebuild your score, you can absolutely rebuild it. Even the worst financial missteps can be recovered from in a reasonable amount of time, if you begin to practice the basics of good credit management.

How to Bounce Back From Bad Credit

Even with some of the most damaging records on your credit reports, you can make improvements to your credit scores by making loan payments on time, keeping your credit card balances low and applying sparingly for new credit.

You’re not forced to sit on the sidelines just because you’re going to have a piece of negative information on your credit report for several years. You can get your credit scores from the three main bureaus and monitor your progress as you rebuild your credit.
Keep in mind not all negative information ages off: Unpaid judgments and unpaid tax liens have the potential to stay on your credit reports indefinitely, so if you’re dealing with either of those things, do what you can to take care of them.

Getting a home loan with a bankruptcy or foreclosure on your credit report likely won’t be anytime within the first two years, but it is possible to still secure credit. However, you will likely notice that the interest rates will be higher in this circumstance. A lot of loans will also depend on the economy at the time. If there are strong performances in terms of revenue from lenders, it becomes more likely. However, if lenders are only granting loans to customers with high credit scores, it becomes harder.

On top of that, remember your credit score isn’t the only thing lenders consider when reviewing you as a potential borrower. While the score is a very important part of getting credit, loan officers look at a variety of other things such as income, debt ratios, length of employment, etc. Don’t forget the importance of patience when trying to recover from financial setbacks. It will take time, but you can rebuild your credit.

Let the Bandy team refer you to experts who can help you with improving your credit score to prepare yourself for homeownership. Let our experienced professionals guide you through all your real estate needs that include home buying and home selling in Denver. Whether you’re searching for Parker Real EstateHomes for Sale in Aurora or any of the other fine housing communities surrounding Denver, we are here to help you find your dream home. We will be there to help you every step of the way!

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Until next time,

Marianne Bandy, Team Leader

 The Bandy Team

Keller Williams Park Meadows

BandyTeam.com - Denver Real Estate & Homes


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Marianne Bandy

Marianne is a professional LDS Realtor in Denver with outstanding integrity, who takes the time to understand your specific housing and family needs. She is the team leader of one of the top selling Real Estate Teams in her broker's office. She understands that a big part of your family's happiness depends on the home and community where you live.  LDS Realtor in Denver Colorado

One of Marianne’s greatest passions is helping people with their Real Estate transactions, typically one of the largest financial transactions they will undertake. Marianne is the listing agent for the team but also loves working with Latter Day Saint home buyers as well.  Marianne uses her expertise and market knowledge so that her clients get the most accurate and up to date information possible. Marianne has a breadth of experience working with clients through all aspects of closing on a home. When listing homes for sale, this includes readying the home for sale, developing a marketing strategy, getting feedback on showings, negotiating inspection items,  and many other details that lead up to a successful closing. 

Marianne is excellent at contract negotiations and looking out for the best interests of her clients. She has obtained the Certified Negotiation Expert (CNE) certification. When helping Buyers, she loves the feeling of helping families connect with the right home in the right community. She also has knowledge of ward and stake boundaries, meeting house locations,  youth programs, drive time to the LDS Denver temple, and seminary locations for your high school children. 

If you’re looking for solid results and a WOW! experience, then call Marianne and put her to work for you. In the last two years, the Bandy Team sold 125 homes.  The Bandy Team has the experience and proven systems you need to make your transaction as smooth and worry-free as possible. 

The Bandy Team is committed to conducting business with the utmost integrity. The team was formed on the principles of honesty and loyalty with clients. Marianne believes in surrounding herself with good people that share her values.  This includes good business partners that can aid in all aspects of a real estate transaction, including home inspections, loans, transaction coordination, home repairs, etc. Marianne and her entire team are committed to the highest levels of customer service for their clients. 

Who you work with Matters!  

LDS Real Estate Agent in Denver Colorado


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