Credit Repair - Understanding Credit Report Penalties
Credit Repair - Understanding Credit Report Penalties.
The first thing most people with bad credit want to know is, “How long will negative information on my credit report stay with me?”Under the federal Fair Credit Reporting Act, credit reporting agencies are not allowed to report any information that is too old, incomplete or wrong. While positive or neutral information can be reported indefinitely, negative information that causes credit penalties can only be reported for specific length of time: Bankruptcy Filings: Chapter 7 bankruptcy filings can be reported for ten (10) years from date filed.A Chapter 13 bankruptcy filing stays on your reports for seven (7) years from the date of filing. Note the penalty expiration date is based on the date of filing and not the date of discharge. Civil Suits / Civil Judgments / Records of Arrest: Any public information of this kind cannot be reported for longer than seven (7) years from the date of entry OR longer than the current governing statute of limitations (whichever is longer). Paid tax liens: Once a lien is paid, the penalty will remain on your credit reports for seven (7) years from the date the lien was satisfied (paid). Unpaid tax liens: A tax lien can remain on your credit report for up to fifteen (15) years or until it is paid.Collection or charge-off accounts: Any credit or loan accounts that were moved to collections or a charge-off status remain on your reports seven (7) years, except for a U.S. Government insured or guaranteed student loan or National Direct Student Loan (NDSL). If those types of student loans are in default and you bring them current for an entire year, your previous late payments will be deleted. Any other adverse information, (including late payments on your accounts) will stay on your reports for seven (7) years. Adverse information is any data that may cause an unfavorable result for you as a consumer; for example, being turned down for credit, employment or insurance, or being charged a higher rate than what you applied for in credit or insurance can both stay on your credit reports for seven years.
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