Negative information on a consumer’s credit report severely affects the consumer’s chances of a positive credit score. Therefore, many consumers with negative information on their credit report wonder for how long this information remains there.
The National Credit Act, precisely, Regulation 17, sets out the data retention periods. This regulation proposes a precise timeframe for each negative information category, thus allowing the consumers to plan their further decisions and moves. There are several categories of information like judgments, adverse information, administration orders, etc.
How long do the judgments remain on your credit report?
If you don’t intend to take any further measures to remove this information, you will need to wait until five years are over and the information disappears from your report.
During the five years, you can get legal advice on how to find a way to delete this information from your credit report earlier.
After which period the adverse information disappear from the credit report?
For adverse information, you won’t have to wait long as they are getting automatically deleted from your credit report after one year. Throughout this period, you can take specific legal measures to delete this information from your credit report or to reduce its further negative effect on your credit score.
How long the administration orders remain on your credit report?
The administration orders will stay on your credit report for five years after which they get automatically removed from your credit report. Like with all before mentioned negative information, there are also solutions for you to eliminate this information before the five years are over.
Even though it’s possible, early removal of administration orders is difficult to accomplish as there is a long and tedious procedure you need to go through before you finish the process.
How the National Credit Amendment act helped the consumers?
Before the credit amnesty and National Credit Amendment act, the administration orders used to stand for ten years. So, before the credit amnesty and National Credit Amendment it seemed almost impossible to deal with the negative information on your credit report.
Not only that it lasted so long, but it was even harder to think of any legal options available that would shorten the overall time of the information staying on your credit report.
How long does the sequestration need to be deleted from your credit report?
There is also another sort of negative information called sequestration orders that, same as administration orders, used to stay on your credit report for ten years, but now it’s also reduced to five years. After five years, a sequestration order is automatically deleted.
Also, if you have negative information connected with missed payments on your, then you will have to wait for up to two years (depending on credit bureaus) before it gets deleted from your credit report.