A credit report maintains negative financial
information for how many years?
A 2 years for credit inquiries
B 7 years for late payments
C up to 10 years for bankruptcy
D All of the above
my answer is d
All of the above.
is that correct
Yes, your answer is correct.
Your answer is correct, D (All of the above) is the correct answer.
To arrive at this answer, you can understand the timeframes for each category of negative financial information on a credit report:
A. Credit inquiries: Typically, credit inquiries remain on your credit report for 2 years. These inquiries are generated whenever you apply for credit, such as a credit card or loan. There are two types of inquiries: hard inquiries and soft inquiries. Hard inquiries, which occur when you apply for credit, are visible to lenders and may affect your credit score. Soft inquiries, such as checking your own credit report or pre-approved credit offers, do not impact your credit score and are usually not visible to lenders.
B. Late payments: Late payments can impact your credit report for up to 7 years. When you miss or make late payments on loans or credit cards, it is noted in your credit report. This negative information will remain on your report for 7 years, but its impact on your credit score may diminish over time.
C. Bankruptcy: Bankruptcy information can appear on your credit report for up to 10 years. Bankruptcy is a legal process that helps individuals or businesses eliminate or repay their debts. It is a severe negative event that can significantly impact your creditworthiness. The details of bankruptcy, such as Chapter 7 or Chapter 13, the filing date, and discharge date, will be mentioned in your credit report. While bankruptcy remains on your credit report for up to 10 years, its impact on your credit score will lessen over time.
Therefore, since all the options mentioned (2 years for credit inquiries, 7 years for late payments, up to 10 years for bankruptcy) are valid durations for negative financial information on a credit report, the correct answer is D (All of the above).