Everyone says bad credit has to stay on your credit report for 7 years…is that true?
Well, by now you all know what I think of “everyone’s” knowledge of credit. So here is the short and sweet answer…Yes, no & maybe…
A creditor does not “have” to place any item on a credit report. Often “good” credit goes unreported completely. Check your credit report and see how much is positive and how much is negative…I guarantee all of the unpaid bills are there, but where are all of those ones that you paid? (A subject for another post) However, an adverse credit account may ONLY stay on a credit report for “up to” 7 years with the exception of some bankruptcies.
Most creditors remove delinquent information at about the 6 1/2 year mark so as not to violate the provisions of the FCRA. However, if you settle with some of these creditors without written confirmation that they will remove the account upon receipt of payment, you may start that 7 year clock all over again with a new (yes NEW) adverse account. Negotiate if you can. The credtors just want their money.
That is the yes, and the no, now here’s the maybe. Most debt has an expiration date just like the milk spoiling in my refrigerator called a “statute of limitations”. You will want to check the SOL’s for your state and also for the type of debt. In NV for instance credit card and contractual debt have 2 different expiration dates. Then of course there is “student loan” and “child support” debt which will follow you until you die (and probably beyond). Do NOT irritate the Government because it will bite you in the butt.
However, every once in a while there are consumer protection laws that come into play. Here, specifically the FCRA Fair Credit Reporting Act. Section 2A means that if the “statute of limitations” is surpassed a creditor may NOT report the debt as outstanding as it is uncollectible.
I put the specific article in here for you “Nervous Nellies” that may doubt that there are actually laws that swing to your side. Well, let’s keep ‘em while we have ‘em and best of luck to you.
If you have any questions, we are always here to help.
Courtesy of DeAnne West