Every consumer who has ever used credit has a credit report, a collection of information about how the consumer has used credit in the past. Regardless of the kind of information contained on the report, specific items on the report can stay there for a only limited time as dictated by federal law.
Credit Reports
The three main companies that collect credit data and compile it into consumer credit reports are Experian, TransUnion and Equifax. You have the right to inspect each of your credit reports for free every year by going to AnnualCreditReport.com, the only site authorized by the Federal Trade Commission to provide you your credit report information.
Errors
If a paid bill mistakenly appears on your report as unpaid, you can have that mistaken entry removed. You have to contact the credit reporting agency that made the report, inform the bureau that the item is in error and provide evidence that the item is wrong. You can do this in writing, though when you do you should provide copies of any documents, keeping the originals. Once the credit reporting company receives the written error notification, it will investigate the report and remove any items it finds in error.
Time Frame
Credit reports can contain accurate negative information for up to seven years, though bankruptcy information can remain there for 10 years. The period begins once the negative event takes place, and if the item appears on your report for too long, you have the right to have this item removed in the same manner in which you would have an error removed.
Considerations
While you can demand that an old paid bill gets removed from your credit report, you do not always have to take this action. As long as you paid the bill on time and didn't suffer from a late payment, debt settlement or similar negative report item, removing the old debt will not have a significant impact on your report or credit score. However, if the old debt is a negative item, having it removed might help your score.
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