Entries on a credit report that will decrease your credit score include late or missed payments, high credit utilization (using a large portion of your available credit), loan defaults, multiple hard inquiries from applying for credit frequently, collections, foreclosure, bankruptcy filings, and closing credit accounts which may reduce your available credit and shorten your credit history.
Key Negative Entries Impacting Credit Scores:
- Late or missed payments (biggest factor, about 35% of FICO score)
- High credit utilization (using a high percentage of your credit limit)
- Loan defaults and charge-offs
- Multiple hard credit inquiries when applying for new credit
- Collection accounts and debts passed to collectors
- Foreclosure and bankruptcy filings
- Closing credit accounts (reduces available credit and credit mix)
- Credit limits being lowered (increases utilization ratio)
These negative entries generally remain on the credit report for up to seven years and significantly affect credit scoring models used by lenders to assess credit risk.
