If you are have had an account charged off, how long will it stay on your credit report? The answer to this question is critical because a credit report that shows that an account has been charged off could cause an Ontario auto loan lender to not want to work with you. Therefore, how long can you expect this to impact your ability to get approved for a loan? Just remember OntarioCarsOnCredit.com will work with you.

All Information On Your Credit Report Stays There For 7 Years

This means that you will have to potentially explain to lenders and other creditors why that account was charged off until the year 2020 if it was charged off in 2013. However, many lenders will look past this incident if the rest of your credit report looks good. Additionally, the farther you go into the future, it won’t look as bad. It is likely that it won’t impact your ability to get a loan within a year or two after it happens.

How Does This Impact Your Credit Score?

At first, your credit is going to take a substantial hit. In some cases, a credit score can drop several hundred points should an account be deemed to be not collectible. The good news is that you can take steps immediately to ensure that your credit score does not stay that low forever.

Is There Any Way To Speed Up The Process?

Unfortunately, there is no way to clean up your credit report any sooner than seven years after an account is charged off. If you need to use your credit score to obtain a loan for a car in the near future, you should work with your creditors to ensure that you can still make payments to settle your past due account. This will keep your credit score reasonably high without having to worry about your account being charged off.

Seven years is a long time to wait for a blemish on your credit report to be wiped away. Therefore, you should be doing everything that you can to pay off your past due bills before they become delinquent. Your credit score will be stay at a reasonable level while you prove to lenders that you are capable of overcoming financial adversity. This way, when it comes to getting vehicle financing in Canada, you won’t run into much difficulty.