At Financial Canadian, we understand the impact public records can have on your credit report. These records, including bankruptcies and tax liens, can significantly affect your creditworthiness.
Dealing with public records reports and charges on credit cards can be challenging, but it’s not impossible. In this post, we’ll guide you through understanding, addressing, and overcoming the hurdles associated with public records on your credit report.
What Are Public Records on Credit Reports?
Definition and Significance
Public records on credit reports are official documents that reflect an individual’s financial history and are accessible to the public. These records significantly influence creditworthiness and can shape your financial future.
Types of Public Records
As of 2025, bankruptcy is the only public record that appears on credit reports from the major credit bureaus (Experian, TransUnion, and Equifax). In 2018, tax liens and civil judgments were removed due to changes implemented by national credit reporting agencies.
Two main types of bankruptcy can appear on your credit report:
- Chapter 7 Bankruptcy: This type stays on your credit report for 10 years from the filing date.
- Chapter 13 Bankruptcy: This remains on your credit report for 7 years from the filing date.
While tax liens and civil judgments no longer appear on credit reports, they can still affect your overall financial health and ability to secure loans or credit.
Impact on Credit Scores
Public records, particularly bankruptcies, can severely damage your credit score. A bankruptcy on your credit report signals to potential lenders that you’ve experienced significant financial difficulties. This can complicate obtaining new credit, securing favorable interest rates, or even landing certain jobs that require a credit check.
Monitoring Your Credit Report
Regular monitoring of your credit reports is essential. You can obtain free credit reports from each of the three major credit bureaus once a year through AnnualCreditReport.com.
If you find inaccuracies related to public records on your credit report, you should dispute them promptly. The Fair Credit Reporting Act (FCRA) grants you the right to challenge any information on your credit report that you believe to be incorrect or outdated.
Now that we understand what public records are and how they affect credit reports, let’s explore how to address negative public records and take steps to improve your credit score.
Tackling Negative Public Records
Verify Record Accuracy
The first step to address negative public records is to verify their accuracy. Request your credit reports from Experian, TransUnion, and Equifax through AnnualCreditReport.com. Examine each entry carefully, focusing on dates, amounts, and account details. Errors in public records occur more frequently than expected (a 2012 study found that one in five consumers had an error that was corrected by a credit reporting agency after it was disputed).
Dispute Inaccurate Information
If you identify inaccuracies, file a dispute immediately. Each credit bureau has its own process for filing disputes (online, by mail, or over the phone). Provide as much supporting documentation as possible, such as court documents, payment receipts, or creditor correspondence.
Credit bureaus must investigate your claim within 30 days and respond. They must remove information they can’t verify from your report. The Consumer Financial Protection Bureau provides guidance on how to dispute errors on your credit report.
Time Limits for Public Records
Accurate public records don’t remain on your credit report indefinitely. Bankruptcies stay for 7-10 years, depending on the type (Chapter 7 for 10 years, Chapter 13 for 7 years).
While tax liens and civil judgments no longer appear on credit reports, they can still affect your financial life. For example, unpaid tax liens may prevent you from obtaining certain government loans or licenses.
Professional Assistance
If the dispute process seems daunting, consider professional help. Credit repair companies can help identify errors and file disputes on your behalf. Exercise caution when selecting a credit repair service (the Credit Repair Organizations Act prohibits these companies from charging upfront fees or making false promises).
Building Positive Credit History
While addressing negative public records, focus on building positive credit history. Open a secured credit card or become an authorized user on someone else’s account. Make timely payments and keep your credit utilization low. These actions can help offset the impact of negative public records and improve your overall credit profile.
As you work to tackle negative public records, it’s equally important to develop strategies for long-term credit improvement. Let’s explore effective methods to rebuild and maintain good credit after dealing with public records.
Rebuilding Credit After Public Records
Tackle Outstanding Debts
Address any remaining debts or judgments first. Negotiate with debt collectors to confirm whether you owe the debt, calculate a realistic payment plan, and make a repayment proposal. Many will work with you if you show a genuine effort to repay.
Use Secured Credit Cards
Secured credit cards are an excellent tool for rebuilding credit. These cards require a cash deposit that typically becomes your credit limit. The Capital One Secured Mastercard and the Discover it Secured Credit Card are popular options in Canada.
Use your secured card responsibly. Make small, regular purchases and pay the balance in full each month. This activity gets reported to credit bureaus, which helps to establish a positive payment history. A study by TransUnion found that consumers with poor credit scores saw an average increase of 52 points after getting a secured credit card and using it responsibly for a year.
Seek Professional Credit Counseling
Don’t hesitate to seek professional help. Credit counseling agencies provide personalized advice and debt management plans. Look for non-profit organizations accredited by the National Foundation for Credit Counseling or the Financial Counseling Association of Canada.
These professionals help you create a budget, negotiate with creditors, and develop a long-term strategy for improving your credit. A 2016 Ohio State University study found that individuals who completed a credit counseling program saw their credit scores improve by an average of 88 points over 18 months.
Monitor Your Credit Regularly
Keep a close eye on your credit reports. Check for any inaccuracies or outdated information. You’re entitled to one free credit report from each of the major credit bureaus annually. Take advantage of this to track your progress and spot any potential issues early.
Practice Good Credit Habits
Develop and maintain good credit habits. Pay all your bills on time (set up automatic payments if necessary). Keep your credit utilization low (try to use less than 30% of your available credit). Avoid applying for new credit too frequently, as each application can result in a hard inquiry on your credit report.
Final Thoughts
Public records reports charges on credit cards can significantly impact your creditworthiness and financial future. You must check your credit reports regularly, dispute any errors promptly, and understand the time limits for public records. Rebuilding credit after dealing with public records requires patience and consistent effort, but it’s achievable with the right strategies.
At Financial Canadian, we understand the importance of a strong online presence in today’s digital world. We offer web design services tailored to your specific needs, helping you establish a robust digital footprint. Our team works diligently to create websites that drive business growth and enhance your online visibility.
Improving your credit after dealing with public records is a journey that demands commitment to your financial goals. You’ll see progress over time if you stay persistent and apply the right strategies. With dedication, you can overcome the challenges of public records on your credit report and build a stronger financial future.
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