When Do Negative Marks Drop Off Your Credit Report?

Your credit report is extremely important because it's used by lenders, landlords and even some employers to understand your level of financial responsibility. The best way to keep your credit score healthy is to avoid accruing negative marks. However, if you already have blemishes on your report, usually only time will eliminate them.

Bankruptcy

The two primary forms of personal bankruptcy, Chapter 13 and Chapter 7, stay on your credit report for 10 years. Both the date of your filing and the date of discharge are marked on your credit report. Chapter 13 bankruptcy is a repayment plan, which allows debtors to keep their assets in exchange for three to five years of debt payments. After that period, the government discharges certain debts. Chapter 7 is thought of as a straight bankruptcy, which includes the liquidation of non-exempt assets in exchange for discharges of certain debts. Neither type of personal bankruptcy generally eliminates child support, taxes, alimony or fines. Some student loan obligations are also not exempt.

Other Negative Marks

Any other negative marks, such as accounts that have been settled or sent to collections, or late payments, will remain on your credit report for seven years from the original delinquency date. Some agencies exist claiming they can remove negative marks from your credit report through a loophole in the system; however, no such loophole exists. Also, according to finance writer Steve Bucci, even accounts you've paid off cannot be removed from your credit report. All accurate negative information will stick around for seven years. After 7 1/2 years, the negative information should automatically fall off your report. (See References 3)

Errors

After the seven-year period, you may still see old negative information listed. Often, if your account went into collections, the date of the original delinquency and the date the account went to a collection agency are reported separately. However, only the date of your delinquency with your original creditor should matter. To have the information of the collections agency removed, you must write a letter to the credit bureaus, including letters from the collection agencies regarding your accounts, to prove that they relate specifically to the account in question. Bankrate's bankruptcy adviser Justin Harelik recommends including proof of your identity (a copy of your driver's license), two proofs of address, a copy of your Social Security card, the relevant pages from your credit report and the corresponding letters from the collections agencies as documentation in support of your letters. Each negative mark that the credit bureau removes may bump your score up by 10 points.

Considerations

While you cannot automatically eliminate negative marks before their seven-year due date, you can keep your credit score as healthy as possible by checking your credit report regularly. You are entitled to one free copy of your credit report from each of the three credit bureaus every year through the Annual Credit Report website. You may order all three reports at once, or space them out over the course of the year. Report any negative marks that have been made in error immediately to the credit bureau and reporting creditor. All discrepancies must be reviewed unless deemed frivolous, usually within 30 days.