February 25, 2022 –Hispanic Solutions Group
It is well known by consumers and users that having negative information on their credit reports could seem like a life sentence against them, but also the good news is that there is a time limit for most negative credit entries.
Sections 605 and 623 of the Fair Credit Reporting Act govern the timelines for consumer credit reports. Assuming the information in your credit report is accurate, most negative information can remain on your credit reports for seven to ten years.
The beauty of this information is that as negative credit items age, they have less of an impact on their credit score and consumers may be able to meet their credit goals.
How long does negative credit information stay on credit reports?
positive credit accounts
Open, active or inactive positive credit accounts can remain on your credit reports indefinitely.
negative credit accounts
Negative credit information generally stays on your credit report for 7 years from the first date you missed a payment on an account and never brought it up to date.
Discharged negative accounts can remain on credit reports beginning 180 days after the delinquency that led to discharge began plus 7 years. Basically, this means 7.5 years in total.
Collection accounts remain on your credit report for 7 years from the date of the first delinquency on the account. When a creditor discharges an account, within 90 days, the creditor must report to the credit reporting agency the month and year of the beginning of the delinquency that immediately preceded the discharge. The 7-year reporting period begins 180 days after the date of first delinquency (DOFD).
the dreaded bankruptcy
Chapter 7, 11, and 12 bankruptcies can remain for 10 years from the date of filing.
A completed Chapter 13 bankruptcy can last for 7 years from the date of discharge and up to 10 years.
Judgments remain on credit reports 7 years from the date they are filed or until the statute of limitations expires, whichever is longer. The exceptions to this are New York: satisfied judgments remain 5 years from the date of presentation.
Tax liens remain on credit reports for 7 years from the date of payment, and if the tax lien is not paid, it can remain indefinitely. With the exception of California, where tax liens, paid or unpaid, remain for 7 years from the filing date.
Foreclosures can be reported on credit reports for 7 years.
Delinquent student loans can be reported for 7 years.
Inquiries can stay on your report for 2 years; But the impact of inquiries on your credit score only lasts for 1 year.
Credit reports and limits
As you can see, most negative information has a credit reporting time limit of 7 years. Please note that the credit reporting time limit applies only to negative accounts. The credit reporting time limit for accounts in good standing can be 10 years or more, depending on the credit reporting agency’s reporting guidelines.
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