The Fair Credit Reporting Act is a federal law that, among other things, enforces how long negative information can remain on your credit report. The loan application deadline is seven years for most negative information.
Certain types of negative information will stay on your credit report for longer than that
- Malfunction information, such as late credit card payments and billing, can be reported seven years from the date of reinstallation.
- Fees, seven years + 180 days from the date of reporting to the credit bureau, normally, this is only seven years from the date of repayment.
- Lack of student loan, seven years (defined by the Higher Education Act).
- Foreclosures, seven years.
- Lawsuits or judgments, seven years from the date of filing or state statute of limitations, whichever is longer.
- Bankruptcy, up to 10 years from the filing date.
- Taxpayers paid, seven years from the paid date or until you ask the IRS to remove it.
- Unpaid taxpayers, indefinitely.
For California residents
- Taxes paid or released remain on your credit report for 7 years from the date of publication or 10 years from the date of filing.
- Unpaid tax liens remain on your credit report for 10 years from the filing date.
For New Yorkers
- The paid judgments remain on your credit report for 5 years from the filing date.
- Collections paid will remain on your credit report for 5 years from the date of the paid or last activity date.
Do you need to do something?
When your loan application deadline expires, outdated information should be automatically deducted from your credit report. You do not need to do anything to invite the credit bureau to update your credit report.
However, if there is an error at the reporting date, you will need to use the credit report dispute procedure to correct the error so that the information writes the credit report at the correct time.
Send copies of all evidence to support your claim to prove your case. You can complain to the Consumer Protection Bureau if the credit bureau and the information maker continue to violate your rights by stating incorrect information about your credit report.
Reporting time in relation to the payment obligation
Just because the loan application deadline does not mean you owe it. The loan application deadline does not specify how long a lender or collector can go after you for an unpaid account. As long as the legitimate debt remains unpaid, the creditor may attempt to collect from you by summoning, sending letters, and any other legal process.
Confusion with statute of limitations
There is another time period relating to debt, the statute of limitations. This time limit varies by state and limits the amount of time a creditor or collector can use the court to compel you to pay off your debt – if you can prove that the statute of limitations has passed. The statute of limitations is usually separated from the credit reporting deadline. Debt can still be listed in your credit report, even though the statute of limitations has lapsed, especially if the statute of limitations is less than seven years.
However, court decisions can still be reported through a state statute of limitations if that period is more than seven years.