Advice on credit report cleanup

READER QUESTION

Can items be taken off the credit report if paid in full by request prior to 7 yrs?

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Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

Federal law (US Code Title 15, §1681c) controls the behavior of credit reporting agencies. This law is known as the Fair Credit Reporting Act (FCRA). Under FCRA §605 (a) and (b), an account in collection will appear on a consumer's credit report for 7.5 years. The clock starts approximately 180 days after the date of first delinquency on the account. To learn when an account will be removed by the credit reporting agencies (TransUnion, Equifax, and Experian and others), add 7.5 years to the date of first delinquency. Subsequent activity, such as resolving the debt, is irrelevant to the seven-year rule. However, if the debt is a tax lien, that can appear for seven years from the date of payment. A bankruptcy will appear for 10 years from the date of the final order. Delinquent federal student loans can be reported indefinitely, i.e., for as long as they are delinquent.

The credit reporting agencies must update and keep accurate data in their credit files. If there is erroneous information (like your collection account, that you believe is inaccurate), you must notify them (typically through a certified letter) and then wait one reporting cycle (90 days) for the errors to be removed.

There are three major credit reporting agencies that offer credit reports. If there is something that you want added or removed, you should contact them directly:

EquifaxExperianTransUnion
800-685-1111888-397-3742800-916-8800
Equifax.comExperian.comTransUnion.com
File a credit dispute online at EquifaxFile a credit dispute online at ExperianFile a credit dispute online at TransUnion

Your credit rating is calculated based on several variables, including: your payment history (do you have any late payments, charge-offs, etc.), the amount and type of debt that you owe, if you have maxed out any of your trade lines, and then several other secondary factors like the length of your credit history and how many recent inquiries have been made to look at your credit history.

If you would like more information, please visit our credit resource page.

We hope that this helped you to Find, Learn, and Save!

Best,

Bill

www.bills.com

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