Is a true that after 7 years your bad credits go away?
By credit you mean debts, and, for the most part, the answer is yes. However, it depends. Some negative information can stay on your report for up to 15 years. Here's a breakdown of how long each of 10 different kinds of negative items stay on your report, aka, drag down your credit score:
]]> Delinquencies (30 – 180 days): Up to 7 years after the first missed payment, the original delinquency date, after which point you never caught up on your payments again. A 30 days late stops mattering after about a year or two, but 60+ days can last for a long time, notes commenter FDCPA Guy.Bankruptcy: Ten years from date of discharge for chapter 7, 11, and 12. Seven years for chapter 13. Any accounts involved in the bankruptcy stay on for seven years.
Collection accounts: 7 years from the original delinquency date (ODD).
Charged-off accounts (when the original lender figures they're never going to get money from you and writes it off as a loss and sells it to a collector): 7 years from the ODD, even if payments are late made (this is important to remember because some collectors try to say that by making a payment with them you've reset the debt clock. We covered this more in this post).
Closed accounts: 7 years from date of reported closing if they have delinquiencies, 10 years if there's a positive balance.
Lost credit card: 2 years, if there's no delinquienceies. If there are, then 7 years from ODD.
Child support judgments: 7 years from date judgement is filed.
Small claims and civil judgments: 7 years from date judgement is filed.
Liens: 15 years for unpaid tax liens. 7 years for paid liens.
Hard credit inquiries: 2 years.
Paid positive accounts: 10 years.
Positive open credit information: forever.
That many years sounds like a long time for a lot of these items. How will I ever get credit? Don't worry so much, says commenter Stephmo. They note that a lot of credit-scoring models just look at the last 24 months, "meaning that if you keep your pills paid for 24 months and your score improves and you manage to rebuild credit for 24 solid months - this stuff starts to not matter as much. If you have 24 months of similar high re-established credit, most creditors will consider you "rehabilitated." In many cases, you can even get auto-approved unless they're really targeting specific delinquency types."
]]>@lhutz34: You are obviously an idiot.
]]>@wcnghj: I know someone trying to settle at least 4 credit cards right now. How many entries on the credit report ? The daily calls have been going on for 7 months now.
]]>@thebluepill: Are you talking debt sold to a collection agency or a credit card company with your account in collection ?
I think even here it has been posted that you should not settle with the collection agency ; only the original creditor . You should settle with the actual credit company to get things like debt settled on your credit history.
]]>So when a credit card is settled will the original deliquencies show up even though the account has been settled ? I know someone who is pretty sure they can get the credit card companies to say account settled on I guess the final entry of the credit report. But what happens with the original deliquencies - were they reported yet ? - how soon does a deliquent account show up on the credit report ?
Some seem to think settling an account will only cost them a year on their credit report but that does not take into account the 6 months to a few years it might take to settle with the credit card company and getting them to agree to enter the account is settled on the credit report .
I know someone who was told 6 months to settle and they about to enter month 8 with some credit card just starting to crank up the heat. I'm pretty sure they're trying to settle 4-5 credit cards at that.
]]>Sorry Shaperen usually to have a good case you need to rule out Bona fide error. Which means you must consumer dispute and give them the chance to correct the mistake prior to suing.
]]>If you have other active well established revolving credit don't worry too much about it.
]]>Usually it's horrid! They often don't pay your bills on time and that can lead to lates also the 'Managed by consumer counseling' notation on an account is a derogatory remark which will lower your scores.
]]>If it's over 10 yrs from the first ch 7 it won't be on the report anymore. No one will know about it unless they check PACER. No car dealers that I know even know what PACER is.
]]>It puts you at more risk carrying larger amounts of cash more often, causes you to lose out on cash back bonuses, extended warranties, and simplicity of tracking your expenses! Going totally credit free is not a state of higher being and suddenly acting more responsibly than people who charge alot. But it might be the best compromise/sacrifice you can make for yourself.
]]>I believe it would show up on your credit report, and it may lower your FICO (don't quote me on that). But as long as you're not delinquent on any accounts, the effect shouldn't be too bad.
Also, make sure you deal with an NFCC-licensed company. They have a locator on their site. Those agencies usually charge a small fee - about $10 per account. The "commercial" ones (more specifically, the ones you see on TV) should be avoided. They tend to charge far more.
]]>However, credit scoring partly depends on what percentage of your credit limit you are using. When you close an account, your credit limit is reduced by the amount on that card, so the percentage you are using goes up. Try to keep the percentage of your balances below 50%.
Bankrate.com has a great deal of useful information about using credit cards to the best advantage.
How would that effect your credit?
]]>The PITA part is that it's done in writing and you'll be doing it through the credit bureaus. Here's the contact information:
Experian
NCAC
PO Box 9556
Allen TX 75013
Equifax Information Services
P O BOX 740256
Atlanta, GA 30374
TransUnion
Customer Disclosure Center
Trans Union Consumer Relations
PO Box 2000
Chester, PA 19022-2000
You can call them to see if they want to take any information over the phone - they may have gotten more consumer-friendly in recent years:
Equifax 1-800-685-1111
TransUnion - 800-916-8800
Experian - 888-397-3742
If you have copies of your bureaus - great! You can reference the disputed accounts with the enclosed copy of your bureau. Otherwise, you'll want to make sure that your letter includes the following:
- Full Name
- Addresses, including prior address if less than 5 years old.
- Social Security Number
I've heard that they occasionally want copies of SS Cards, but not always.
Give them the account carrier, the account number and the issue with the account. If you have proof of the dates in question, it's even better if you send that information along. They will give the account carrier 30 days to either correct the information or prove the information is correct.
The reporting agency will get back to you within that 30 days to let you know the results of the investigation. If it changes your bureau, you'll get another free copy of your bureau showing the changes (those don't count against your free annual copy, by the by).
]]>Just a sidenote ot nacoran, some states have Statutes of Limitations on suing of a debt as low as 4 years, while others (Ohio) can go as long as 15 years. Same with Judgements being collectable. Always check your state statutes, especially if you are being sued. Junk Debt buyers can get your old accounts for pennies on the dollar (they buy portfolios of millions of dollars of junk debt for next to nothing) and file suit knowing that 95 percent of debtors don't show up. Then they go after the Judgements, which are golden to them. They can attach your wages, your property, and make your life miserable. Just for pennies on the dollar.
]]>Very much so, especially if you are someone who cannot control the spending - for whatever reason.
They can be a very useful tool if you can handle them, but not worth the risk if you know you are going to abuse it.
Kinda like sharp knives and parkinsons...
]]>[Though I would suppose that it is not too bad when replying to someone like that.]
]]>Student Loans: Forever
]]>If they're doing BK again exactly at the point where the BK was about to drop off, this can look horrible to a lender.
Even though your friend has legitimate reasons, this is going to be the immediate reaction a lender will have: "They're trying to file BK every few years to dump their debt! And I'm not going to be the next lender to get caught up in this!"
When a car dealer in this environment is saying no, it's not a good thing. He can try another dealership and see if it's just a lazy dealer - but usually those guys will grind all their lenders until they can get an approval (they'll spin the multiple BKs as, "hey, they can't file again for 7 years and I only want a 5 year loan - you're golden!").
Your friend isn't totally SOL. There are options, but they aren't pretty. Large down payments on less car is one way to go (30% +). Try talking directly to a credit union or a bank lender across a table and see what they will offer for a car note - they'll probably give your friend a maximum Loan-to-Value if he's approval or further advice if he's not. Strong parental co-signer is another way to go. Last on the list? Buy here-pay here.
]]>TL;DR
]]>On delinquencies, though, I'd always assume they'd take the time to report you. :)
]]>I requested my credit repot a few years ago and it contained several delinquencies. I checked my report again this year and the dates of the delinquencies which were on the old report have all changed. All the dates are now years after they actually took place. Debts from 2004 are now 2007. How do I handle this? Any suggestions?
]]>He no longer uses credit cards or borrows money. He has no debt, of course. He's learned a new lifestyle where he either buys what he can afford or saves his money for larger purchases. He buys less and appreciates what he owns more.
He seems happier and healthier.
His experiences really make me think that credit cards are not worth the trouble.
]]>Fast forward to 2008 and we get a call from a collection agency saying we owe $45 for an unpaid Cingular bill. She called Cingular and they said that even though we still remained a customer, since we moved from one market to another, that meant that they apparently closed out that account and opened a new one for her. They said that they sent the final bill to our new address, but we never received one.
So I guess my question is, she has paid the $45, but it showed up on her credit as a collection. How long until this goes off her credit? 7 years from the original delinquency date or 7 years from when she paid the $45?
]]>I have one account from 12 years ago that has been resold and the collector is now trying to contact me to pay it. It is nowhere on my report and it looks like I can safely write it off.
]]>I'm going to tell them to go pound sand.
]]>@rdm:
@BZMedia:
Jail is rare. My husband's father only made 4 payments in 16 years. He only takes work that pays under the table and everything that he owns is in his significant other's name who he won't marry so no one can touch the money.
Rant over
That being said, it is sad that one mistake will follow you for almost ten years. Especially when in most cases it is the result of misinformation, unfair practices, and archaic penalties.
]]>Quick example, I broke an apartment lease and offered the complex the full debt I owed them. They refused to take it at the office and said they'd have to bill me. The bill was from a collection agency that doubled the amount and called the rest their "collection fee". I refused to pay double what I owed. They said they'd settle for 1.5x the actual debt, but not before they went ahead and put it on my credit. In the end it was easier to just wait and see if they were willing to spend the money to sue me before the 7 years was up than to pay people who thought the full amount of the debt wasn't enough.
]]>It can possibly show that you're abusing the lost/stolen card rules to get out of paying for debt. It's a possible fraud indicator. It's normal for a few instances, but if you see multiple cards across multiple dates every few years - you have to start wondering...
]]>This is all I do for now. I hunt down dead beat "MOM" only. The problem is the law seems to only go after dads. I do have to wait till there is a order but still the look on their face is worth me not getting paid.
]]>@BZMedia: that is what the law would like you to believe. UInfortunately that is not true. I know a person who has made less than 10 child support payments in 14 years (and they were only by wage garnishment) and he is still free. never been to jail or anything. Everytime that they start to garnish his wages he quits and goes somewhere else to work until they start to garnish his wages again.
The law says one thing but when you try to get them to enforce it they just turn their heads or tell you that they do not have the resources to go after every dead beat dad (or mom). You can even tell them where the person is ad they will not go arrest them.
]]>Oh trust me I know what length the Junk debt buyers or 'factoring companies' like Midland and Asset Acceptance will go to. The best defense against them is knowing the laws.
]]>@Samantha Brown: Assuming it stays for 7 years, it looks like you've got 2 years left before it comes off.
]]>@Biggbrother: Only for delinquent payments. No mention of child support payments shows on your credit report as long as you have always paid on time.
]]>Ive seen it happen a LOT.. You get some of these collection agencies that just do not care at all.. Yes, you can sue them, but odds are, they are willing to throw it on your credit as a bargaining chip and remove it if the crap hits the fan.
Debt collectors will go to great lengths and lie like crazy to collect.. They have been known to tell people they are going to jail!
]]>Or you could not care about the credit system, skip out on your debts and save a lot of money by not paying them back.
Really, you could do either of those things, or anything in between, or what you are able depending on your individual circumstances. Point being, what do you care what other people do with their credit? I assure you, nobody here gives a damn what you do with yours.
]]>What if a parent pays child support but pays on time?
]]>Sorry that's wrong. It goes off the report once the Date of last activity (DOLA) is old enough to where it becomes obsolete data (7 yrs). They can still attempt to collect it but they cannot report it to credit. The debt being sold does not change the DOLA. If it gets sold and re-aged so it's kept on the report longer it is against the FDCPA and the FCRA and you can sue them for it.
]]>Also, what about people who have been irresponsible, seen the error of such ways, are trying to turn things around, and want to know what to expect?
Or are you one of those people who don't believe that a person should ever be allowed to better themselves?
]]>This would be especially frustrating because the first time it was lost (in a cab) I recovered it, but I canceled it immediately anyway to prevent theft.
]]>Debts never really go away.. they simply get sold..
So yes.. you may have a collection account that is 5 years old.. and not pay it. BUT, that collection agency will sell it again, it becomes a NEW entry on your credit report and the old one stays on there.. It simply does not go away till you pay or settle it.
]]>Plus not using credit- which is some of the advice or trollish comments we see is not a good thing. Having no revolving debt usage hurts your scores. Having no credit gives you no score and it's worse than having a bad or low score.
]]>Sans that.. if you do get a late or even collection, simply ask if they creditor will remove the derogatory information.
For Collection Accounts, there are several canned letters where you can agree to pay the account in return for the item to be removed completely from your credit. Doesn't always work, but its worth a try.
]]>Correct score wise but lenders are not going to be able to do a new home loan for him for 3-5 years under current guidelines, just fyi. In addition, Experian has been reporting short sales or 'settled' real estate debt as a M 8 or 9 payment pattern which banks view as a foreclosure. Funny thing is the original creditors are not giving Experian this data, they are interpreting it. So much for bureaus only being the parrot eh?
]]>Lost credit card: 2 years, if there's no delinquienceies.
Does a lost/stolen credit card also lower your credit score, or just simply appear on the report?
]]>Of course, one of the things that they're not really mentioning is that a lot of models look at "last 24 months," meaning that if you keep your pills paid for 24 months and your score improves and you manage to rebuild credit for 24 solid months - this stuff starts to not matter as much.
If you have 24 months of similar high re-established credit, most creditors will consider you "rehabilitated." In many cases, you can even get auto-approved unless they're really targeting specific delinquency types.
]]>@lhutz34: I love when the first comment is also the most obnoxious. It makes Consumerist so much more efficient!
]]>@lhutz34: Yeah, but then what will the self-righteous types have to complain about? This is a service for the people!
]]>@lhutz34:
And off we go.....