How Long Will Credit Problems Stay On My Credit Report?

By now, you should already know what a credit report is and how important that information can be for your finances. You should already be checking your credit report at least once a year to make sure that there are no mistakes or outdated information affecting your credit score. You may have had difficulties with finances in the past, but, hopefully, you are working on improving your credit and are now making better financial decisions. If this is the case, you may be wondering how long your credit problems will stay on your credit report and the answer to your question is quite simple.

Each month, all of the creditors and collection agencies you do business with will report new information to the credit bureaus, who then update your credit information. Most negative information on your credit report (i.e. late payments, student loan defaults, foreclosures, etc.) will generally be removed after seven years, but there are a few exceptions and other rules to keep in mind.

Exceptions

•           Bankruptcy information can remain on a credit report for ten years

•           Tax liens are removed from a credit report seven years from the date they are paid, not the date they are filed, and unpaid tax liens will stay on the report for fifteen years

•           Charge-offs will be removed seven years plus 180 days from the date reported to the credit bureaus

•           Information on the report about an application for a job with a salary of more than $20,000 will have no time limitation

•           Information on the report about a credit or life insurance application for an amount exceeding $50,000 will have no time limitation

•           Any information about a lawsuit or judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer

•           U.S. Government insured or guaranteed student loans will be on the report for seven years after specific actions are made by the guarantor

•           There may also be other exceptions or restrictions according to your state laws

General Credit Report Rules to Remember

Contrary to a lot of online information about credit reports, the Statute of Limitations does not apply to the length of time a certain item will stay on your report. There are separate laws regarding each of these rules, and there is absolutely no relationship between the two. Also, the length of time negative information stays on your report starts from the time your payment becomes late, and not from the time you made your last payment on the account. Payment on an old debt will not reset the clock on reporting for the next seven years.

It is very important to remember to check your credit report often. Some collection agencies will update their reporting status on you to keep the account active with the bureau. Most of the time, when these updates are reported, the creditor makes it seem as if the time of the last account activity is later than it really was. This will extend the time the information stays on your report, and these actions are illegal. If this should happen to you, take action against the collection agency, and then the bureau will be able to remove the information at the correct time.