The length of time derogatory credit marks remain on a person’s report is only benefitting the banks. A single 30 day late payment should not affect a person’s creditworthiness 6 years later. Derogatory marks should begin falling off at 1 year for a 30 day late, 2 years for a 60 day late, 3 years for a 90 day late and 4 years for 120. 7 years may even be too harsh for bankruptcy. collection and foreclosure.
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That’s a great idea! Credit reform should be a top priority for the incoming adminstratrion. No body should be punished for having bad credit because they fell on hard times. We’ve all been there and it takes a lifetime trying to get credit scores over 700-800. I feel that credit should be used only for the purchase of large purchases like a home, land, car and needs to start a business. Credit Cards have gotten a lot of well meaning Americans into the abyss of debt. The States should require credit and financial education and literacy in High Schools.
So many did the right thing…saved money, paid their bills. Then COVID was unleashed. Thousands lost jobs, companies shut down, industries shutdown and good people saw their credit scores fall to unuseable numbers. Restore credit scores to their highest point before covid…it won’t cost a dime, but will allow all those who played the game by the known rules a chance to get back in the game. We had no say this…this was not our fault and we should never have been punsihed for it.
This is paramount. 2 years maybe but 7 is 1/10 of your life. Way too long. Same with bankruptcy. 3 years max.