Which Public Records Can Appear on My Credit Report?

What Public Records Can Appear on a Credit Report?

Bankruptcy is the only public record that gets reported to the three national credit bureaus: Experian, TransUnion and Equifax. Previously, civil judgments and tax liens were also included in your credit report, but the credit reporting agencies stopped including them in consumer credit histories by 2018.

Because filing bankruptcy indicates that you're unable to pay your debt obligations, it's still an important risk factor for lenders when determining your ability to make future payments.

Public Records That No Longer Appear on Credit Reports

The three national credit reporting agencies removed two types of public records from consumer credit reports in 2017 and 2018, including:

• Tax liens: A tax lien is the government's legal claim against your property when you fail to pay a tax debt. The credit bureaus began removing tax liens from credit reports in 2017 and had removed all of them by April 2018.
• Civil judgments: A civil judgment is a court ruling that you owe a debt, often issued after a creditor or debt collector sues you for nonpayment. The credit bureaus removed all civil judgments from credit reports in 2017.

Even though these records no longer show up on your credit report, lenders may still search public records for tax liens and judgments when you apply for credit. A judgment can also give a creditor the ability to garnish your wages or bank account.

Note: While a civil judgment won't show up on your credit reports, the underlying debt might. If a debt collector reports an account of what you owe, the collection account can stay on your credit reports for up to seven years from the original delinquency date.

How Long Does Bankruptcy Remain on Your Credit Report?

There are two types of bankruptcy you can file as a consumer: Chapter 7 and Chapter 13 bankruptcy:

• Chapter 7: A Chapter 7 bankruptcy involves liquidating certain assets to pay off some of your debts, after which the remainder will be discharged. This option can discharge your debt quickly and give you a fresh start. But, it remains on your credit reports for 10 years from your filing date.
• Chapter 13: This option involves setting up a restructured repayment plan to pay off some of your debt over three to five years based on your ability to pay. Chapter 13 bankruptcy requires more action and payment from you. It remains on your credit reports for seven years from the filing date.

In either case, court records are updated periodically, and the status of the bankruptcy—for instance, that it has been discharged—will be updated automatically in the credit report.

Note: While a bankruptcy will remain on your credit reports for several years, its negative impact on your credit can diminish over time, especially if you take steps to develop good credit habits and establish a positive payment history going forward.

Why Public Records on Your Credit Report Matter

Payment history is the most influential factor in your credit scores, and a bankruptcy shows that you couldn't repay your debts as originally agreed. As a result, a bankruptcy can severely damage your credit score.

How far your score falls often comes down to what your credit looked like before you filed. If late payments or collection accounts had already lowered your score, the bankruptcy may not add much more damage.

Here are just a few ways a bankruptcy on your credit report can affect your financial life:

• Harder approvals: You often won't get approved for credit until your bankruptcy has been discharged. Even after that, you'll have a hard time qualifying for certain types of loans and credit cards.
• Higher borrowing costs: Any loan or credit card you're approved for may come with steeper rates and extra fees until you've rebuilt your credit history.
• Mortgage waiting periods: You'll typically need to wait one to four years after your discharge to qualify for a mortgage. The exact timing depends on your loan type and which chapter of bankruptcy you filed.

Even public records that don't appear on your credit reports show that you didn't pay a debt as originally agreed. So, while they may not directly impact your credit score, they can still give lenders cause to deny an application or offer less favorable loan terms.

How to Check Your Credit Report

It's important to review your credit reports regularly to understand which factors are impacting your credit score. The good news is that you can check your credit reports for free. With Experian, you can review your credit report for free anytime. You can also check your credit reports from Equifax, TransUnion and Experian for free weekly through AnnualCreditReport.com.

As you read your credit report, you'll have a better idea of which steps you can take to build and maintain a good credit history. If you find inaccurate information on your credit report, you have the right to file a dispute with the credit reporting agencies.

The Bottom Line

While civil judgments and tax liens are no longer included in your credit reports, filing for bankruptcy can still negatively impact your credit history. If you're having trouble paying your debts, consider bankruptcy alternatives before you go down that path.

If bankruptcy is your only option, take time to consult with an attorney who can help you determine how to proceed based on your situation. Be sure to monitor your credit throughout the process and take steps to rebuild your credit afterward.