Negative information on your credit report can be reported for up to seven years, but sometimes longer if it is serious. The length of time noted in these bullet points means from the start time of your late payment or delinquency, not the last time you made a payment on the amount. Some collection agencies, though, will update their reports to keep your account active with the credit bureaus so they can lengthen the time a negative item stays on your report. You do have a right to challenge this and you should if it happens to you!

So what are some of the negative items that are put on your credit report?

• Bankruptcy information can stay on your credit report for 10 years
• Tax Liens can stay on your credit report for 7 years after they are paid
• US Government insured or guaranteed student loans can be reported for 7 years after certain guarantor actions
• An application for $50,000 or more worth of credit of life insurance can actually stay on your report forever.
• Information about a lawsuit or judgment against you can stay on your report for 7 years.

APR (Annual Percentage Rate) is a simple financial concept to grasp, however, calculating your APR is a much more difficult task. APR is the interest rate you are signed up to pay when dealing with credit and loans. Taking that interest rate you receive and dividing it by 365 (the number of days in a year) will give you a basic, yet not exact, amount that you will actually have to pay back in interest on any loan you take out.


For instance, if you take out a loan for $1,000 dollars at 10% APR and have to pay it back in one year with one payment, you are left with the equation of: ($1000 x 10% x 365 days (billing cycle of one year))/365 days) = $100 in interest. Add $1000 dollars to that and you will know the total loan cost will be $1100 dollars.

Of course this could never be accurate, especially if you are dealing with credit. Your credit account is constantly changing as you rack up purchases. If you pay off all debts before the end of a billing period, you don’t pay interest; however, if you can’t pay back the balance in full you can be stiffed with harsh APR interest. Following billing periods can increase the amount you own in interest if previous interest debts aren’t removed from the credit accounts.
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With the introduction of plastic money resources, credit cards and debit cards, it has been easier to get through payment processes with a swipe of that magnetic strip or simply entering in the digits on our keyboard to make purchases online. The debit card and credit card work similarly enough, and despite the differences being very vast, many people still can’t seem to spot why a debit or credit card may be better to use than the other. Being an informed consumer is an important step in making the correct financial decisions, and knowing whether you should use debit or credit is one of the first decisions you should make.

Where are you getting your money?

The most obvious difference between debit and credit cards is the source of cash from which you are drafting money from while making purchases. A debit card uses your bank accounts as its drawing source. While withdrawing money from an ATM or fueling up your gas tank, the money taken or paid is drawn out of the savings or checking account connected with that card. When dealing with debit cards, the limit on the money you use is exactly how much you have in your bank account.
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Credit card debt is one of the worst financial situations you can manage to get yourself in. If you are sitting there, looking at multiple credit card statements and only sending just enough money to your creditors to cover the minimum payments due, you are making one of the least efficient financial choices you could ever make. By the time you end up paying off those debts with minimum payments, you’ll have acquired so much in interest that you’ll pay double, or more, of what you actually racked up on those credit cards.


Failing to pay and continuing to dig yourself deeper into a hole of credit card debt, you’ll find your credit score gradually slip. This will affect nearly every aspect of your life. With a bad credit score you’ll have a more difficult time finding a better job. You won’t be able to purchase or lease that new hybrid-electric car you want because you can’t charge your credit card with the price of gas as it is. No bank will even come close to considering you for any type of loan, and if you somehow had the thought that you could buy a new house, kiss that dream goodbye.
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