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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?
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@tonalanswer: It appears on your report. It's one of those things that alone may not mean anything, but if there are quite a few could indicate a pattern of something else.
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how does closing an account you no longer use take 10 years? such bs that's where the real reform needs to be.
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@Skankingmike: Closing the account does not take 10 years. It is the RECORD of you having that account that stays in place for 10 years (i.e. credit history). This is what the whole credit score system is about in the first place, that's why it stays there for many years.
The Bankruptcy dates are from the date discharged not filed FYI.
30 day lates stop having a real score impact after a year or two but 60,90, 120s can impact a score for a long while.
Unpaid judgments don't come off after 15 yrs on the reports I deal with daily. I have to often pull satisfactions on them and supply them to the bureaus to get them removed. Pulling satisfactions on a file from 1992 is not fun!
@FDCPAGuy: question for you about the bk's, is it true that a 2nd one will make the first one still show up for a longer period of time? A very good friend of mine filed back in like 1997 (childish mistakes), and recently had to file again (major medical bills combined with a job loss) and was told by a car dealer that he would be rejected for multiple bk's even though it's been over 10 years since his discharge.
@Krobar:
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.
@Krobar: It depends on date of discharge and accounts still involved in the bankruptcy. It's not really a \"OH - 10 years, now get rid of it!\" kind of thing. Odds are, some accounts are still open - including those that will say, \"not included in Bankruptcy\" that will be noted on the account (mortgage or credit cards they chose to keep open).
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.
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Best bet is to pay your debts on-time..
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.
@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.
And.. I should add..
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.
@thebluepill: NONONO: there can only be one original creditor account and one collection account on your credit report at a time!
@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.
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.
@FDCPAGuy:
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!
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.
@FDCPAGuy: I actually have at present a company trying to contact me and collect on a debt from 12 years ago. It has been resold at least once that I'm aware of. I just ran my three credit reports and nowhere on it does it state I have ever had that debt so it won't impact my score.
I'm going to tell them to go pound sand.
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@thebluepill: And you can dispute those if they're more than 7 years past the original delinquency date. And get them removed. And if a collector puts them back on, you file suit under the FCRA and FDCPA.
Does losing your credit card lower your credit score? I've had to have my card replaced twice this year, but I always reported it immediately, there were no bad charges, and I've never been late with a payment or carried a balance. I did realize that the card shows up three times on my credit report from being closed and opened those times, which doesn't necessarily look good.
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.
@dham: It's not so much that it lowers your score as it can say, \"this person reports their card stolen a lot.\"
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...
Regarding the Child Support Judgement. Does that relate to being delinquent on Child Support payments?
What if a parent pays child support but pays on time?
@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.
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@Biggbrother: Child support delinquencies will be reported, but primarily they're talking about the original judgement. If you become delinquent, you've got much more to worry about than your credit report. Like Jail.
@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.
@billlnv: He'll be running from them forever. Child support never goes away. There's no limitation for him to outrun. He'll either eventually pay it, be caught, or continue to run.
@BZMedia:
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.
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What about student loans? My ex wife isn't paying hers, and even after we have been split for 3 years they still hound me trying to get in contact with her (really annoying honestly, since we have zero contact). I know you can't bankrupt out of Student Loans, so do these standard rules apply for collection accounts?
@SanDiegoDude: Mail the collectors, via USPS signature confirmation, a letter to cease and desist contacting you.
@SanDiegoDude: Delinquent account. Although some lenders treat them differently. Almost like medical debt. Not always, but sometimes - so it may not be as harmful to her as you'd like.
What about one missed payment? In 2004 I made one late payment on one credit card that I shortly closed thereafter (it was a private store card). It still shows up on my credit report even thought I haven't made a late payment since then.
@Samantha Brown: One 30 day late will show, but lenders won't care if the rest of your credit is good. If it was 5 years ago, a lender would really have to try hard to find the 30 day late - most payment histories show 24-months.
@Samantha Brown: Assuming it stays for 7 years, it looks like you've got 2 years left before it comes off.
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I understand it is the consumers responsibility to maintain good credit, but even the most responsible person is set up for failure the way the system is set up right now. Credit card companies are out of control. All the regulations are meant to protect them and their shameless antics, not the consumer. They camp out on college campuses hawking free t-shirts for signing up for a credit card. They raise APR anytime they can, and use every excuse in the book why it is justified. More then 80% of my mail is a credit card company \"approving\" me for an obscene amount of credit. They are deceitful vultures that prey on anyone they can get in their grasp.
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.
Thanks, Consumerist! This article reminded me that I SHOULD go to annualcreditreport.com and get my three free reports.
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.
Cingular came after my wife last year saying that she owed $45, mind you she had been and still was a customer of Cingular/AT&T since 2001. In 2002, we moved to another city in the same state (TX) and she transferred her cellular service to a local number.
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?
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@wagnerism: Nice. You just made a disemvowelable comment thats completely un-disemvowelable. Nice.
[Though I would suppose that it is not too bad when replying to someone like that.]
@lhutz34: This is assuming that the debt on your credit report is one you actually owe. Or the creditor may be completely unwilling to work with you to the point you'd rather just let it slide off.
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.
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@lhutz34: If you honestly think that paying what you owe will immediately improve your credit, you're living in a dream world. Have you not read all the posts about credit history problems on this website? What country are YOU living in, 'cause it ain't the united states of broken credit.
@lhutz34: \"Or you could just pay what you owe and your credit will improve immediately. Since when is skating on your debts responsible consumer advocacy?\"
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.
@lhutz34: Nobody's telling anyone to \"skate\" on anything. Since when is it NOT responsible consumer advocacy to inform people?
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?
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.
@lhutz34: Nobody was advocating it. Someone asked when things drop of your credit report. Consumerist just answered the question.
@lhutz34: There are some of us with credit and debt issues where circumstances are beyond our control. My wife and I had decent credit, no credit cards (we paid them all off with a loan against my 401K after falling into the trap of using credit cards to support our income in college when we were 20-22)... bought a house and a car... and a few months later, my wife and daughter nearly died in childbirth. My daughter had 3 heart defects that required surgery and has cerebral palsy. We had \"decent\" corporate-provided medical insurance, but it certainly hasn't covered everything, the car is impractical for transporting a special needs child, and we are not eligible for most grants because my salary is \"too high\" for a family of four. I'm right in between \"needing help\" and \"having enough means\" to support it. So sometimes the mortgage is late and a bunch of the medical is still not resolved, sorry. I understand my credit is shot and I am hurting others by my delinquency, but there is not a hell of a lot I can do for it but pay as much as I can toward past debt while trying to provide a \"basic\" standard of living for my family.
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@lhutz34: I love when the first comment is also the most obnoxious. It makes Consumerist so much more efficient!
@katstermonster: Agreed. It's annoying when some clueless nub has no concept of proper grammar skills.
@lhutz34: Yeah, but then what will the self-righteous types have to complain about? This is a service for the people!
Please correct this: nothing stays on your credit report for 15 years.
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My brother filed for bankruptcy a couple of years ago. I'm starting to think that he may be better off than most people.
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.
@twophrasebark: Its true a credit card account open is a bad idea if you cannot control yourself and stick to your budget. However... its also a legitimate asset you are denying yourself in order to prevent getting into excessive debt. This is not 'better' it is 'more in control' for your situation.
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.
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...
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?
@davidviera: It's a bit of a pain, but the good news is that the lenders do have to prove it to the bureaus.
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).
@Skaperen:
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.
While credit reporting limits are more standardized, the statute of limitations very from state to state on just how long you owe an uncollected debt.
Student Loans: Forever
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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.
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What about \"debt counseling\"? You know, those things where you pay a flat fee every month, in exchange they lower your interest rate to something that actually isn't racketeering or whatever the right term is (extortion?) and it goes through a clearinghouse.
How would that effect your credit?
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@locakitty: Also, if a debt counseling agency negotiates a lower balance the part that you don't pay off becomes a charge-off, 7 years. This is the part of debt renegotiation that I don't think counseling agencies explain well enough the their customers - just because the creditor has agreed to eliminate part of your debt, doesn't mean that your credit won't take a hit.
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.
@locakitty: What they do is call up your creditors and say \"John Doe is having problems paying his bills, so he's retained our services to help him; if you want him to pay you, you need to lower his rates.\" They have no power to lower interest rates without cooperation from your creditors.
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.
What about closed accounts after the bank jacks up the rate on you. This has happened to just about everyone I know, and I know it's been covered here. It's clear these banks are, in some instances, trying to get the customer to close the account. I had one card go from 7.9% to 18% and I closed it the day I got the notice. Will that be with me for 10 years?
If you close an account, make sure to ask that it be reported as \"Closed at customer's request\". That way it will probably not have an adverse effect on your credit score.
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.
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.
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This is so funny, my friend just texted me earlier saying that a collection agency found him and is attempting to collect on a debt from 1997. The original debt was for 1,200.00+ and they are \"willing\" to settle for 135 and change. He asked me if he should take it. My response was \"NO F***ING WAY\". Should'nt this OLD debt be long gone by now? How does he get them out of his hair?
There is no provision in the Fair Credit Reporting Act specifying unpaid tax liens.Unpaid liens fall under \"other derogatory info\" which can be reported for 7 years.
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What about a foreclosure or a short sale? Unfortunately I am facing one or the other right now. Are they different than just a closed account with a delinquency/charge-off?
@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.
@rdm: Major Derog - it will be a delinquency/charge off paid with balance. 7-10 years.
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.