A question about credit, and credit reports

[Deadly_Nightlight]

My friends and I were talking today about credit reports. One of my friends says that if you wait out 7 years that anything that was on your credit report will be gone. I find that kind of hard to believe. I figured it had to be after you paid whatever it is on your credit report that it would disapear off your record that you were ever behind in 7 years, can someone shed some light on this?

[Severian]

The Fair Credit Reporting Act dictates how long certain records can be maintained in your credit report.
This page summarizes it for you.

-Chapter 7 Bankruptcy: 10 years from date of filing.
-Chapter 13 Bankruptcy: 7 years from date paid in full and 10 years if not paid as agreed.
-Judgments: 7 years from date filed.
-Foreclosure: 7 years from date foreclosed.
-Collection accounts: 7 years from the date of delinquency with the original creditor.
-Paid Tax Liens: 7 years from date paid.
-Unpaid Tax Liens: Indefinitely from date reported.
-Trade lines (line of credit or loan): 10 years from the date paid in full or closed.
-Charge offs: 7 years from date of original delinquency.
-Closed accounts: 10 years from date closed if paid as agreed.
-Payment Patterns: Credit grantors typically do not consider payment history older than 2 years, but can remain on for as long as 7 years.
-Credit Inquiries: 2 years (placed by you or a creditor)
-Adverse information: may remain up to 7 years from date of delinquency.

As you can see, quite a few things remain on your report for seven years. Some things longer, some not quite as long.

[Fisherking]

It’s true - the only 30 day late payment I ever had was about 8 years ago.

I saw a very recent copy of my credit report after refinancing my home - it was gone. It was there on the credit report used to get my original application…but it was no longer on the report…earlier this year.

I guess they can’t hold it over your head forever.

[NoGoodNamesLeft]

you wait out 7 years that anything that was on your credit report will be gone

(Bolding mine)
Just to clarify here, since I didn’t see it in the OP. Debts PAID will be gone within 7 years from the last date of activity (payment). OUTSTANDING debts stay there until you pay them.

[_baby_cat]

my friend said in hong kong that same thing, after 5 years all your owing balances are erased…cos he didnt pay his bills for a long time…hehe

[Philster]

Important: The limits refer to ‘derogatory’ information.

An account with a late payment can stay forever, but the late payment can’t hang around for more than 7 years.

I see accounts that date to the 60’s and 70’s everyday - like mortgages.

If an account gets written off or goes to collection in 1998, and you make a payment today, the purge date is still set from the 1998 date, or from an earlier date the account went bad if the creditor reports that.

~~Resident Credit Industry Expert.

[madmonk28]

Is there anything a person can do to clean up a report earlier than 7 years? I’m, er, just asking for a friend.

[Philster]

You always have the right to dispute information, even a balance. If the creditor doesn’t reply within 30 days, the disputed info comes off - sometimes the whole account drops off.

Most accounts over 5 years are hard to verify. Actually, most late pays over 2-3 years are hard to verify, so it is wise to get a report and dispute info. Don’t cost nuthin’ to get a report in many states, and a denial of credit gets you a free one regardless.