Final answer:
Credit reporting agencies keep negative information, except bankruptcy, on credit reports for 7 years. Late payments on obligations like credit cards can lead to charges that may be reported as delinquencies and impact a credit score.
Step-by-step explanation:
Credit reporting agencies maintain negative information (excluding bankruptcy) on your credit report for 7 years. This typically includes late payments, charge-offs, collections, and other financial mishaps. It's important to note that while the terms of a mortgage generally last 15 or 30 years, the incidence of any late payments would only affect your credit report for 7 years from the date of the delinquency.
Understanding the effect of late payments is also essential. For example, if a credit card company charges a $10 late fee and an additional $5 daily fee for each day the payment remains unpaid, these fees can sum up quite quickly and might potentially be reported as negative items on your credit report if the account becomes delinquent. Such information stays on the report for 7 years but does not have as lasting of an impact as a bankruptcy, which can stay for up to 10 years.