After serious delinquency, your creditor may take legal action against you. If the court finds in favor of the creditor, the action will become a matter of public record, and in some cases, the action will find it’s a way to your credit report.
Which Public Records Appear On Credit Reports?
Public records that can appear on your credit report include bankruptcy, judgment, or a tax lien. In some states, foreclosure and repossession are also public records. These entries are also the worst types of entries to appear on your credit report because they show serious delinquency.
Not all court actions are placed on your credit report. Divorce, for example, is a matter of public record, that doesn’t show up on your credit report or affect your credit score. Typically only public records that stem from a debt affect your credit.
Credit Reporting Time Limit for Public Records
Most public records can remain on your credit report for seven years. Chapter 7 bankruptcy, however, can stay on your credit report for up to 10 years. In California, tax liens can stay on your credit report up to 10 years from the date the lien was filed. Unpaid tax liens, in some cases, may stay on your credit report for up to 15 years.