How Long Does Information Stay On Your Credit Report?
May 5, 2008
Credit information can, and usually does, stay on a person’s credit report for seven years. Collections stay on the report for seven years from the date of last activity – whether that is the date that the account was filed as a collection or the date the account was paid in full. Here’s an example:
“Jane Borrower” had a collection for $300 filed against her in October of 1994, and she hasn’t paid it. It is now September of 2001, so in a few weeks that collection can come off of her credit report. (She will probably have to request of all three credit bureaus that they take it off.) However, Jane has applied for a loan today, and the loan officer tells her that she has to pay off that debt in order to be approved. Since she has the money, she pays it off. Because the date of last activity is now September 2001, the collection will show on her report until September 2008 – another seven years.
Bankruptcy information can stay on a credit report for ten years. Information about foreclosures is reportable for twelve years from the date filed. Garnishments, judgments, and tax liens can stay on the report for twelve years from the date of entry or for seven years from the date they were satisfied. Dismissed garnishments, judgments, and tax liens are not reportable.
|
Type of Information |
Length of Time Can Stay on Credit Report |
| General credit information | Seven years |
| Collection | Seven years from date of last activity |
| Bankruptcy | Ten years |
| Foreclosure | Twelve years from the date filed |
| Garnishment | Twelve years from the date or entry or seven years from the date satisfied |
| Judgment | Twelve years from the date or entry or seven years from the date satisfied |
| Tax lien | Twelve years from the date or entry or seven years from the date satisfied |
| Dismissed garnishments, judgments, and tax liens | Not reportable |
A consumer can request copies of his or her credit report from the three credit bureaus and dispute information that is incorrect. Incorrect information can be corrected or removed, but correct information (good or bad) usually stays on the report for the period allowed. Only the credit grantor or credit bureau can remove correct information – the consumer cannot remove it.
Credit Tip - Short Sales & Your Credit Report
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Did you know that as part of a “Short Sale” process, a borrower can (in most cases) pre-negotiate how the entry of a short sale is recorded on their credit file? The best case scenario for credit reporting is something along the lines of account legally paid in full for less than the full balance” Furthermore, The Mortgage Forgiveness Debt Relief Act enacted into law in December 2007 (for debt forgiven in 2007, 2008 and 2009), allows borrowers that have had to make this tough decision, for debt incurred to either buy, build or substantially improve their primary residence.
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Here’s breaking news you need to know … and you need to let all your family and friends know right away as well.
Credit Tip - Revolving Accounts
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Credit Tip - Opting Out & Inquiries
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Your credit history and how it affects your credit score.
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Credit History
Did you know that nearly 80% of all Americans have inaccurate, negative, or misreported information on their credit reports, pulling their credit scores down? Just the process of editing an individual’s personal financial history and cleaning up and/or removing aged negative entries in the credit bureau system can have a very powerful effect on improving one’s credit profile and corresponding credit score.
Contact us today to see how we can help.
What’s so important about old accounts?
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Reporting Trade Lines
Did you know that in order to maximize the value of reporting trade lines (TL) on your credit history, it is best to keep open revolving accounts with long histories (i.e., over 10 years) even if the account is not really being utilized? This is because the FICO scoring system adds more positive value to longer term credit histories. Accounts that are positive, but closed will only have a positive effect on your credit score for 10 years from the date opened, and could lower your overall score due to the loss of positive history if closed.
Contact us today to see how we can help.