I probably already phrased this question wrong. : P
My friend and I were talking about the ensuing mortgage crisis (which is affecting our local area hard) and about subsequent credit issues folks involved would face. Then we got confused about credit issues and now are at loggerheads. When do credit ratins get removed? At the end of 7 years past loan start date, or 7 years past failure to pay?
I’m sure I’m being confusing. Let me illustrate using Joe, one unfortunate dude.
Joe decided to buy a car. Yay Joe! On 1/1/2001 Joe bought a car using the classic down payment / loan configuration. His loan was for 4 years. In otherwords, Joe would have paid up totally on 1/1/2005.
After 2 years of making payments, Joe was attacked by a cougar at the local zoo on 1/1/ 2003. Poor Joe! Now missing several limbs, Joe could no longer work. After a few months of not being able to pay his car note, the car folks came and repo’d Joe’s car on 4/1/2003. Joe was sad.
Obviously, this bit of nastiness would be on Joe’s credit report, yes? Would it come off 1/1/2008 (7 years after the loan was placed), or would it come off 4/1/2010 (7 years after repo)?
If you are wondering, I am female, I have never been attacked by a cougar, my limbs are intact, and my car is the garage. I’m just curious. And ignorant. Oh so ignorant.