Your credit report shows your credit history, including any payment history, things like late payments, collection accounts, bankruptcies, foreclosures, and the like. On the positive side, credit information may remain in your credit report permanently while on the negative side, negative information is supposed to drop off after some time say within years. However, certain items cannot be erased regardless of the time that has elapsed.
This information should therefore be disputed since it has been revealed to contain wrong information.
However, if there exists any misleading and negative information in your credit report, you are protected under the FCRA to correct the information. This will include such details as information that relates to you but belongs to someone else, accounts that you never opened, the wrong status of accounts that you opened, and so on To report the error, you need to file a dispute with the credit bureaus namely, Experian, Equifax and TransUnion. As a matter of law, they are expected to make an investigation of your complaint within 30 days. If the information provided is inaccurate, the bureau is under legal obligation to immediately delete the negative item.
This part of the credit report will always remain there as long as you live.
While most negative information falls off between 7-10 years, there are a few items that may remain indefinitely:
Bankruptcy Filings
Credit reports are impacted by Chapter 7 bankruptcies in that they can remain on your credit report for up to a decade after the initial filing date. Chapter 13 cases are public records and can remain open for up to 7 years from the filing of the petition. Nevertheless, the public record in the literal sense, which is the actual bankruptcy filing, may be disseminated indefinitely. Thus, the account will presumably drop off after years 7 to 10, while the bankruptcy is going to be with you for the rest of your life.
Tax Liens
If you do not pay your taxes, then the federal government or a state can place a lien on your property. Generally, tax liens can remain on your credit report forever because they don’t come with a statute of limitations unlike other items on the credit report wherein if not resolved and satisfied, it will stay on your credit report until eternity. However, a record of a lien may still appear even after it is paid which can cause the borrower a lot of trouble. The only option open for getting a paid tax lien removed is to get it withdrawn. If you are requesting this, you will need to fill out the IRS Form 12277 and attach other necessary documents.
Civil Judgments
Civil judgments involve court decisions in which you are deemed legally liable for a certain amount of money owed to companies or people. These judgments may remain on the credit report for up to 7 years from the time of filing of the case or the statute of limitations of the state whichever is longer. Nevertheless, depending on the type of information – bankruptcies, tax liens, judgments – the record will always be public. Thus, you can always locate the civil judgment ruling irrespective of its status on your credit report.
Student Loan Defaults
Paying back your federal student loan is important because defaulting can hurt your credit. However, if you are unable to pay for your education, then education-related defaults are wiped clean from credit reports after 7 years but the loan balance is owed perpetually. This is because, unlike other forms of federal student loans, they are not answerable to the statute of limitations as per a Supreme Court decision. They may chase you for up to 6 years from the date of the last payment made on the loan to be recovered.
For the most part, if negative information is accurate in your credit reports, they will drop off by themselves after the required periods under the FCRA. However, one should know that records of public records such as bankruptcies and tax liens are always available whether a credit check is conducted or not. The main point is to manage negative accounts actively with the intent of avoiding their negative impact on credit as much as possible. It is also good to monitor your credit score and reports frequently so that there is no way you will have any hindrances to your credit scores and reports.
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