how long does bad debt stay on credit report?
Date: Thu, 01/04/2007 - 05:35
Can anyone say? I was informed that after 10 years all bad debt has to come off the credit report ,then someone else told me 7 years all comes off,is this true.
Depending on what it is, it is 7 years for some debts and 10 deb
Depending on what it is, it is 7 years for some debts and 10 debts. :D
Credit/collection accounts and judgments can stay on your credit
Credit/collection accounts and judgments can stay on your credit report for 7 years + 180 days from the date of first delinquency. Meaning if you open a new account May 2000, make your payments on-time up until July 2005, and then your account becomes delinquent in Aug 2005, your account can be reported until Jan 2013.
Bankruptcies Can be reported for 10 years.
Exact law can be found in the FCRA under 15 USC 1681c:
Quote:
???? 1681c. Requirements relating to information contained in consumer reports (a) Information excluded from consumer reports Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information: (1) Cases under title 11 or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years. (2) Civil suits, civil judgments, and records of arrest that, from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period. (3) Paid tax liens which, from date of payment, antedate the report by more than seven years. (4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years. (5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years. ... (c) Running of reporting period (1) In general The 7-year period referred to in paragraphs (4) and (6) of subsection (a) of this section shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action. |
