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Information About Credit Reporting
Monday, Aug 31, 2009
Question: I have 2 credit card accounts that were opened in 1999 and 2000. Isn't it supposed to drop off my credit report? New report date is 3/09. Does this new date matter when it's dropped off my credit?
Answer: By federal law, all debts must be removed from a credit report after seven years (US Code Title 15, §1681c) and bankruptcies after ten. The seven years starts running from the date the account was charged off by the creditor, which generally means seven and a half years from the date of last payment. Review your credit report carefully to make sure that the dates of last payment being reported on these accounts are correct.The law stating that derogatory items must be removed from credit reports after seven years is designed to help consumers recover from past credit mistakes and help them rebuild their credit rating. If you find charged-off accounts appearing on your credit report after seven years, you may want to dispute the incorrect listings with the credit bureaus.
Some creditors, especially debt purchasing firms, will report inaccurate charge-off dates to extend the amount of time an old account appears on your credit report. If
you find any inaccurate information, you should dispute the credit report listing with the bureau in question. See the Federal Trade Commission document How to Dispute Credit Report Errors for more information.
The seven-year rule only applies to derogatory items, not to accounts that you are keeping current, or which you closed in good standing. As long as an account is not considered derogatory, it can remain on your credit report indefinitely. In fact, even accounts that are no longer reporting to the credit bureaus may continue to appear on your report as long as the account is not a derogatory item. It is common to see positive items that are more than 20 years old appearing on a credit report.
Back to your question about derogatory items. For example, if you opened an account in 1985, and
The seven-year rule only applies to derogatory items, not to accounts that you are keeping current, or which you closed in good standing. As long as an account is not considered derogatory, it can remain on your credit report indefinitely. In fact, even accounts that are no longer reporting to the credit bureaus may continue to appear on your report as long as the account is not a derogatory item. It is common to see positive items that are more than 20 years old appearing on a credit report.
Back to your question about derogatory items. For example, if you opened an account in 1985, and
stopped making payments in 2003, then the account should fall off your credit report sometime in 2010.
The new "reported date" should not affect the date on which the account will be removed from your credit report. Again, the seven year time period runs from the date on which your accounts were charged off by the creditor. If you think that any item is appearing on your credit report incorrectly, you should consider disputing the items with the major credit reporting agencies.
To learn more about credit, credit reports, and credit scoring, I invite you to visit the credit information section on Bills.com. I wish you the best of luck in your efforts to repair your credit report, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
The new "reported date" should not affect the date on which the account will be removed from your credit report. Again, the seven year time period runs from the date on which your accounts were charged off by the creditor. If you think that any item is appearing on your credit report incorrectly, you should consider disputing the items with the major credit reporting agencies.
To learn more about credit, credit reports, and credit scoring, I invite you to visit the credit information section on Bills.com. I wish you the best of luck in your efforts to repair your credit report, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
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