Getting accurate information removed from your credit report is no easy feat. Over time, however, information about most debts will drop off your credit record, making it easier for you to get credit at decent interest rates.
Debt and Credit Reporting
Unpaid debts and late payments can show up on your credit report and stay there for up to seven years, though if you request a loan over $150,000 or apply for a job that makes over $75,000 per year, credit bureaus can continue reporting negative information indefinitely.
There are two ways of getting information permanently wiped off your credit report: The first is to dispute untrue information with the credit bureaus. If they can't prove that the information is accurate, they have to take it off your report. The second is to persuade a creditor to remove the account, usually by offering to pay off or settle the debt.
Statute of Limitations
The statute of limitations on collecting a debt through the courts varies from state to state. Once the statute of limitations is up, a judge can dismiss a creditor's lawsuit on the grounds that the debt is outside the statute of limitations. In many states, the statute of limitations is only a few years, far less than the length of time a debt can remain on your credit report.
Bankruptcy
Don't mistake the fact that your debts can be "discharged" in bankruptcy with their being eliminated from your credit reports. While bankruptcy can end your obligation to repay a debt, the debt will remain on your credit report up until the time limit set by the Fair Credit Reporting Act. However, once a bankruptcy court discharges your debts, your creditors are obligated to list your debts as having a zero balance.
Debt Buyers and Old Debt
Some companies are in the business of purchasing old debt and trying to collect it, even if it is past the statute of limitations. While you may not be legally obligated to pay this debt, and the debt should not be returned to your credit report, some unethical debt buyers will try to bully you into paying it anyway. They do this by either putting the account back on your credit report, tricking you into agreeing to repay the debt or by taking you to court. If you hear from a collection agency about a very old debt, take action. Send them a letter via certified mail informing them that the debt is out of statute and to refrain from contacting you again. Check your credit reports as well: If you find that the debt is back on your reports, file a dispute with the credit bureaus.
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