How Long Does Something Stay on Your Credit Report?
While the negative elements on your credit report may seem like a millstone on your neck, the penalty on your account disappears and the blemishes will disappear from your credit history … eventually . And the good news is that your report also deserves a good reputation – for up to ten years. Here’s a look at how long both good and bad credit will haunt or help you, and what you can do to change that.
Most of the lending activity lasts 7 years.
The Fair Credit Reporting Act (FCRA) is a federal law that dictates how long certain information can remain on your credit report by law. For the most part it will be 7 years old, although there are exceptions. Here’s what to expect:
- Credit Requests (2 years): When you apply for a new line of credit, the lender will make a so-called hard request (or hard request) , that is, asking for your credit history. This is actually a neutral event, but opening a large number of lines of credit in a short period of time can be a red flag, which is why it ends up on your credit report.
- Delayed or Missed Payments (7 Years): If the late payment is more than a 30-day grace period, it will remain on your credit report for 7 years, even after you pay the late balance. As part of your credit report, it can be any indication that one or more of your accounts are 30, 60, 90, 120, 150, or 180+ days overdue. The later you pay, the worse for your credit rating.
- Invoices for collection (7 years): If you ignore late payments, they are eventually passed on to a collection agency. Even if you pay your collection bill before the seven-year period expires, it will remain on your credit report .
- Write-off (7 years): A write – off is when the lender closes the account because he does not believe you can service the loan. However, you are still on the hook for debt and this leaves a black mark on your credit report.
- Chapter 13 bankruptcy (7 years): Under Chapter 13, borrowers with a stable source of income agree to a repayment plan that pays off a significant portion of the outstanding debt over three to five years, after which the balance is paid off. …
- Chapter 7 bankruptcy (10 years): Chapter 7 bankruptcy – or outright bankruptcy – is viewed less favorably by creditors because there is no repayment plan. For this reason, Chapter 7 bankruptcies can remain on credit reports for up to 10 years from the date you filed for bankruptcy.
- Opening accounts in good standing (indefinitely): Fortunately, timely payments on this line of credit will remain in the accounting records as long as you have an account.
- Reputable Closed Accounts (10 years): Your credit score can benefit from the effects of, say, a closed, reputable credit card account long after you have paid off the balance.
Now the good news
Although negative elements remain on your report for a long time, their impact on your credit rating will fade over time if your borrowing behavior improves. Unfortunately, credit agencies do not know how quickly good behavior will improve your rating, but the penalty for most events will disappear within a few years (or a few months, in the case of a tough investigation). The exception is bankruptcy , which can completely affect your credit score until it disappears from the books.
Also, if your recent credit history is good, but there are old flaws in your report that you would like to erase, consider sending a so-called “letter of goodwill” to the appropriate credit bureau. There is no guarantee that this will work, but your request will receive more support if you cite financial difficulties (for example, due to a pandemic). This Lifehacker post will walk you through the steps.