How long does a bankruptcy, collection account or judgment stay in my credit file?
A bankruptcy stays on the credit report for 10 years. Collection accounts and all other credit report information stay for 7 years. Recency is a large determinant of credit score results. Having a prior bankruptcy is not always a stumbling block toward getting a home loan, especially if it occurred more than three years in the past. Another tip: If you have a collection account on your credit report older than 3 years, pay it off after you seek a home mortgage, as paying off the collection before seeking a mortgage will bring its date of last activity into the present, which may drop a credit score from its current level. Be responsible in paying off the debt after you have secured your mortgage. See also: Credit Scoring.
