06 Dec 2022

Is It True That After 7 Years Your Credit Is Clear?

Credit Score and Construction Loans

Individuals who are researching the various aspects of the loan application and approval processes may want to understand if their credit will be clear after seven years. For the most part, yes, after 7 years an individual’s credit will indeed be clear as long as they do not keep accumulating negative credit information. Most major credit infractions exist on an individual’s credit history for seven years. 

  • Repayment history information exists on an individual’s credit history for two years
  • Writs and summons, overdue accounts, court judgements, overdue accounts classified as clearouts, and overdue accounts classified as payment default exist on an individual’s credit history for five years
  • Overdue accounts classified as serious credit infringement exists on an individual’s credit history for seven years

In general, most of the negative information on an individual’s credit history will remain for seven years. However, individuals can still boost their credit scores and improve their financial histories through various methods. 

How Can I Boost My Credit Score?

  • Paying all bills in full and on time every pay period
  • Decreasing high credit card limits
  • Ensuring credit card balances remain low
  • Decreasing or eliminating existing debt, including credit card debt
  • Avoiding the accumulation of debt
  • Ensuring there are no contestable, unfair, or disputable information on credit history reports

Having a good credit score is a great way for potential borrowers to ensure they have the best chances of receiving approval for their desired loan option. Additionally, most home loan providers recommend their potential clients work on boosting their credit scores before applying for a loan to increase their overall borrowing power.

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