Question

Onsumers sometimes make choices that cause negative information to be put on their credit reports. Which of these is the most likely number of years that this negative information will remain on their credit reports? A 3 to 6 years B 7 to 10 years C 11 to 14 years D 15 to 18 years

Answer 1

Answer: B. 7 to 10 years

Explanation:

A person's credit score essentially determines how much a lending institution will trust a person to pay back a loan. Those trusted more will get a lower interest rate. The better the credit score the lower the interest rate and vice versa.

It is important therefore that negative information like late or missed payments towards loans be avoided as they damage the credit score. Credit rating agencies like to be recent enough to gauge a person's current status but not too recent so they usually leave negative information on the credit reports for between 7 to 10 years.