Statute of Limitations for a Credit File

The statute of limitations for a credit file refers to the amount of time that the credit bureaus can legally leave past credit and debt information within your credit history. The Fair Credit Reporting Act (FCRA) sets strict regulations regarding the reporting period for all credit information in order to provide lenders with only the most recent or pertinent information about your debt management skills.

Time Frame

Most items reported to the credit bureaus only remain a part of your credit file for seven years from the date you or the credit grantor closed the account. For example, a credit card charge-off must be removed seven years from the date the account was charged off. Current accounts remain a part of your history until seven years from the date you cancel the account.

Features

Certain forms of derogatory information can appear within your credit history for longer than seven years. For example, the credit bureaus maintain a record of any past bankruptcies you filed for up to 10 years. A tax lien will continue to appear on your credit record for 15 years or until you pay it off -- at which point the standard seven year statute of limitations for removal goes into effect. One notable exception is unpaid federal student loans, which continue to appear on your credit report indefinitely until you pay them off. Once paid, student loans, like tax liens, adhere to the FCRA's seven-year reporting period.

Misconceptions

Many individuals confuse the statute of limitations for credit reporting with the statute of limitations for debt collection. The statute of limitations for credit reporting refers solely to the amount of time a given item can remain a part of your credit history. The statute of limitations for debt collection, however, refers to the length of time a creditor can legally sue you for an unpaid debt. While the credit reporting period for all items is federally regulated, the statute of limitations for debt collection varies by state.

Warning

When calculating the reporting period of an account, the credit bureaus use information provided by the creditor concerning the date the account was originally opened or the date the account was charged off. Some collection agencies intentionally report incorrect dates to the credit bureaus in an attempt to leave their trade lines on consumers' credit reports for longer than federal law allows. If the Federal Trade Commission detects this activity, it will levy a fine against the company. The fact that the practice exists at all, however, should motivate you to regularly monitor your credit report.

Considerations

If, while monitoring your credit report, you discover old accounts that should no longer appear within your file, you can dispute the accounts with the credit bureaus. The credit bureaus accept disputes online, by phone or via mail. Each credit bureau will then evaluate your claim and remove any obsolete information from your credit history.