The worst negative record that you can possibly have on your credit report is a bankruptcy. Usually bankruptcy will stay on your credit report for 7 years, but the effects on your credit report can last for as long as a decade. You probably will not be able to get approved for credit or a loan at all during the first few years after you have filed for bankruptcy, because it has a very large and very negative impact on your perceived capability to repay an obligation.  If you need a car or any major item that you can't pay for in one cash lump sum bankruptcy may not be the option for you.