What Is A Public Record On The Credit Report?

Knowing the credit report is essential in your banking and loans journey. This article talks about the public record on credit reports and the information on credit reports.

What Is A Public Record On The Credit Report?

A credit report has a separate section on it which is for public records. A public record is necessary to know about your financial affairs and how you deal with your bills and other financial matters. It can affect your credit score. These come from government documents and any negative information can hurt your credit scores. The public report is very important when the financial institution is trying to look for how frequent you’re with paying your bills and also if you have any negative financial history. 

A bad public record on the credit report can stay there for a long time due to which you might suffer. Legal actions may be initiated. Let’s look at it in a bit more detail to see what a public record on a credit report is and how it works.

What’s A Public Record On The Credit Report?

A separate section on your credit report concerned with your public affairs is what we are talking about here. If you have any file with a local, county, state, or federal court then these are also available here. If you have any serious cases against you including bankruptcy, judgment, foreclosure, repossession, or a tax lien then they also appear here in your credit report. This can be a serious problem as it might cause your creditor to file a case against you.

The three major consumer credit bureaus, Experian, Equifax and TransUnion, have recently adopted stronger public record data standards for consumer credit reports.

Although all the three bureaus try to eliminate any mistakes in the credit report that won’t help you to get rid of a bad report which is a result of you doing something that doesn’t fit in their rules and regulations. Thus, it’s best to understand those things so you have a complete idea of all the things that can cause your credit reports to be adversely impacted.

Important Things That Are Included As A Public Record On The Credit Report

  1. Bankruptcy

You declare bankruptcy when you are no more able to pay off your debts as you have agreed initially. This shows your financial incapability and thus makes your credit score dip badly. Such a record in your credit report might stay for up to ten years.

Depending on the type of bankruptcy being Chapter 7, Chapter 11, or Chapter 13 bankruptcy, the way the creditors would respond will be different. In some cases, you have to pay all the debts and in others, you have to negotiate with the creditors. Whichever time it might be, it would leave a negative impact on your credit report for a long time.

  1. Foreclosure

It’s okay to get a loan for some of your necessities, especially when it’s a new home but be sure to borrow only what you can pay off on time or this might appear as a bad report if foreclosure is on your credit report. 

Although foreclosure isn’t as a bar as bankruptcy it isn’t of any good either. It is looked upon as very negative by lenders and might affect your capability of borrowing in the future.

This can last in your credit report for about seven years in total.

  1. Tax Lien

Unpaid tax can be a really bad thing for your credit report. Not paying your tax thus ending up having an unpaid tax lien is what you should save yourself from even if you might hate paying off the taxes. Some tax-related credit reports can stay on your records indefinitely and some for about fifteen years. Paying off an unpaid tax would eventually help you to erase such a record with time.

Don’t forget to remind yourself of your taxes and pay them on time so you are not affected by them. 

  1. Lawsuit

So, if you have a lawsuit that you lose and you end up owing some money as a result of it then this can also find its way into your credit report. Such a record can remain in your reports for about seven years. But the credit reports will only include those court records that indicate you lost a lawsuit and had a civil judgment rendered against you.

Recommended: The Ultimate Guide to Credit Card Churning

Time Limit Of Public Record On The Credit Report

A public report can last for a long time depending on the type of report. It can be for as long as seven to ten years. A bankruptcy on a credit report may remain on your credit report for as long as ten years, more or less. A foreclosure on the other hand may remain on your report for about seven years.

An old report eventually gets out of your credit report as time passes.

How To Remove A Public Record From The Credit Report?

If a public report has crept into your credit report by mistake, then the credit report dispute can be used to get it removed. You can also dispute the error with the court in case the credit bureau doesn’t help you and doesn’t remove the error. Thus, in case of a wrong public report, you have the support to get it set right but not in the case of a real public report. For a real public record on your credit report, well you can’t dispute it as it will not help you. You have to work your way out of it according to the law.

How To Improve Your Credit After A Public Record?

Now in case you’ve had a public record on your credit report, although it’s a really bad condition at the time that can also get well. A new public record on a credit report can have extreme effects on your credit score when it is new but it gets better with time. Following good financial habits, paying your bills on time, keeping your debt and credit utilization low can all help you out of this faster.

Final Thoughts – Key Takeaway Points

A public record on your credit report thus can be a really bad thing for your financial background and might have really bad effects but it’s necessary that you try to prevent yourself from getting such a report and I’m case you are in such a situation then do follow the instructions to get this report better with time.

Frequently Asked Questions

What Is The Different Information On The Credit Report?

The information that a credit report typically may contain and is not limited to is bankruptcy records, specific account information, basic personal details, names of those who have a copy of your credit report, dispute statements, etc. 

What Is The Information That Is Not Visible On The Credit Report?

It does not contain information about an individual’s personal preferences and lifestyle details.

For What Duration Will The Information Be Present On The Credit Report?

It depends on the type of information. Information may be displayed between 2 years to 10 years. 

What To Do If There Is An Error On A Credit Report?

You can dispute the error online or contact the customer care of the credit bureau. 

Can I Delete Information On A Credit Report?

You cannot as per legal norms. However, you can request edits if there need to be.