Definition
Potentially negative items is a classification of credit records by credit bureaus that have some negative aspect that likely lowers the credit score.
Analysis
Consumer credit reports contain a section labeled “potentially negative items” which contains various credit records that may be responsible for reductions in credit scores. These may include trade lines with missed payments, collection accounts and public records. Public records may also appear as a separate subsection, as may collection accounts.
Potentially negative items that are still active accounts may revert to a positive status once the account has been restored to a current status and the delinquency has aged beyond 7 years. Accounts that are charged off will remain as a negative account on the credit report for 7 years. Public records may remain longer.
