Items that appear on your credit report, whether positive or negative, will not appear forever. The Fair Credit Reporting Act (FCRA) sets a time limit each credit entry can remain before being removed by the credit bureaus.
Facts
Although many items in your credit report, such as past foreclosures or charged-off credit card debt, have a seven-year reporting period, not all debts do. Bankruptcies, tax liens and judgments all may remain on your report for longer than seven years.
Options
If you discover that the federal reporting period has expired on any item on your credit report, you may notify the credit bureaus that are reporting the entry by disputing the item. You may dispute by telephone, mail or online. The credit bureaus are then legally required by the FCRA to investigate your claim and, if the information is obsolete, remove it within 30 days.
Significance
The more recent a debt is, the greater an impact it will have on your credit score. Old credit report entries will still be visible to future lenders that conduct a credit check, but may only have a minimal effect on your credit score.
Misconceptions
The seven-year reporting period for overdue credit card and medical debt begins six months after your last payment. Because of this, the debts will legally appear on your credit report for a total of 7 years.
Effects
Items that remain on your credit report beyond the reporting period can cause you to be turned down for credit or prevent you from getting a good interest rate. Having these items removed is in your best interest to boost your credit score and maintain the accuracy of your credit report.
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