On your credit score, there is a section called the Date of Last Activity. This is truly defined as the last activity, whether a purchase with the credit card, a payment on the debt, or anything else. Similarly, it can also be negative, like the delinquency date, or the last time anyone checked into your credit score. Managing your date of last activity is one factor that will lead to an improved credit score.
When creditors check your credit score to see your level of risk, they will often check your date of last activity. If all of your dates are negative – that is, if you have delinquent accounts on your credit report – it is unlikely that you will be able to get new credit. Although you cannot really affect negative dates of last activity, it is still important to know your dates in order to know what to expect from your credit score and when you can improve it.
Negative dates of last activity can become dates of first delinquency. These are defined as the first time that you missed a payment that led to it becoming a collection, which happens 120 days after it is past due. Dates of first delinquency will remain on your credit report for seven years and positive dates of last activity will remain for ten years. Bankruptcies will also remain on your credit report for ten years. If you check your credit report regularly, you will know when these dates can be removed and you can check for any inaccuracies. Since collections can be such an important indicator of poor credit, it is crucial that you can get rid of them as soon as possible.
Although the date of last activity is just a marker for how credit companies view your credit report, it is still important for you to maintain it. If you keep watching it, you can avoid accounts ever becoming delinquent to protect your credit score and prevent a lot of hassle for years to come.