Negative information on your credit report can keep you from qualifying for a conventional Ontario auto loan, but that information won’t affect you forever. Knowing how long black marks can remain on your report will help you understand when your credit score will begin to improve and getting affordable car financing will be easier. It is the first step toward improving your financial future and let OntarioCarsOnCredit.com show you the way.

For the most part, negative information will remain on your credit report for seven years. This includes such things as:

•     Late payments
•     Accounts turned over for collection
•     Chapter 13 bankruptcies
•     Foreclosure
•     Most public records

It is important to note before going in to finance anything whether it be an auto loan at used car lots or home loans at a bank that the seven year clock begins at different times for different types of records. For instance, collection accounts can be reported for seven years from the date the original debt went into default, regardless of when the collection agency obtained the account. Chapter 13 bankruptcies are reported for seven years from the date the process was completed. Tax liens will remain on your credit report for seven years after the lien is paid, regardless of how long it has been since it was first filed.

There are exceptions to these rules, of course. After exiting bankruptcy, a Chapter 7 filing will remain on your credit report for 10 years. If you have a judgement filed against you, that will remain for the longer of seven years after it is filed or your state’s statute of limitations. Defaulted student loans are reported for seven years after the guarantor has taken required action.

There are also times when a credit report inquiry can look back further than seven years. Those instances are:

1. If the credit inquiry is tied to an application for a job with a salary of greater than $20,000 per year.
2. If you are applying for life or credit insurance in excess of $50,000.

In both of these cases, there is no time limit to the information that can be reported.

Having negative information on your credit report is distressing, but it won’t always affect you when taking out loans to get cars for people with bad credit. Taking steps now, such as paying your auto loan on time each month, will improve your credit report, and over time the negative information will not be as important. A few years down the road, the blemishes will be removed, leaving you with a bright financial future.