People sometimes find themselves in trouble with credit, possibly by spending money they don’t have or facing a medical emergency or job loss. In any case, when a person misses several payments or even files for bankruptcy, it’s obviously not going to look good on that person’s credit reports.
The good news is that, over time, older entries, including negative entries, disappear from your credit report. For most negative entries, such as late payments, this occurs after seven years and for bankruptcy filings after 10 years. Even before negative items are removed, however, you have the opportunity to slowly and steadily build your credit back up in much the same way a young person first starting out with credit would do.
Word to the wise: Beware of companies that offer “credit repair” services. By and large, anything these companies would do, you can do yourself. They will charge you a hefty sum to pull your credit report, look for negative entries, and contact the lender of those entries to work out a payment plan for you. Instead, you can pull your own credit report and do the work yourself!