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On this issue, there is much confusion. Almost every
so-called credit repair expert has a different opinion regarding the
actual credit reporting period allowed by law.
Most negative listings may be kept on your credit
report for a period of 7 years beginning on the date that you were last reported late before they repair themselves. This means that if you were
late every month from March to August of 1995, that your date of last
activity would be on August of 1995. In this case, the item would be due
to repair itself on August of 2002. You don't have to live with 7 years of
Bad Credit. Download "Give Yourself Credit" Today |
There are several exceptions to the seven year rule.
Bankruptcies may be reported for 10 years from the date that the
bankruptcy was discharged. Liens and judgments may be reported for seven
years or until the statute of limitations in that state (usually between
seven and ten years) runs out, whichever is longer. However, credit
bureaus usually keep these listings on the report for the seven year
period regardless of the local statute of limitations, unless you repair
them first.
The other interesting exception is in the case of a
negative listing that has been sent to collections or has been charged
off. The seven year limit begins 180 days after the last late payment
before the account was charged off or sent to collections. In other words,
if you didn't pay a certain bill from January to March, and the creditor
sent the account to collections in June, then the negative listing could
remain on your report for 7 and 1/2 years from that last payment in March
unless you repair your credit first.
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