How long do items remain on the report?
Most negative items remain on the credit report for 7 years from the date of first delinquency.
Delinquencies: (30 - 180 days late) Remain 7 years from the date of the initial missed payment.
Collection accounts: Remain 7 years from the date of the initial missed payment that led to the collection (the original delinquency date). When a collection account is paid in full, it will be marked "paid collection" on the credit report.
Charged-off accounts: Remain 7 years from the date of the initial missed payment that led to the charge off (the original delinquency date), even if payments are later made on the charged-off account.
Closed accounts: Closed accounts are accounts that are no longer available for further use. Closed accounts may or may not have a zero balance. Closed accounts with delinquencies remain 7 years from the date they are reported closed, whether closed by the creditor or by the consumer. Positive closed accounts remain at least 10 years.
Lost credit card: If there are no delinquencies, credit cards that are reported lost will continue to be listed for 2 years from the date the card is reported lost. Delinquent payments that occurred before the card was lost are reported for seven years.
Bankruptcy: Chapters 7, 11, and 12 remain for 10 years from the filing date. Chapter 13 remains 7 years from the filing date. Accounts included in bankruptcy remain 7 years from the date they were reported as included in the bankruptcy.
Judgments: (child support, civil & small claims) Remain 7 years from the date the judgment is filed.
Tax Liens: (city, county, state, and federal) Unpaid tax liens remain 15 years from the filing date. Paid tax liens remain 7 years from the paid date of the lien.
Inquiries: Remain for 2 years, with those in the last 6 months usually given the most consideration.
Positive Accounts: Remain indefinitely and paid positive accounts remain 10 years.
Ok, I understand what is being reported and I'm ready to get started!
You need to have a basic understanding of the
Fair Credit Reporting Act (FCRA) and
Fair Debt Collection Practices Act (FDCPA).
These are the laws that apply to credit reporting and debt collection. You have specific rights regarding both. Understanding your rights is basic to moving forward. Read and re-read until you are familiar with these laws. Post questions as necessary for clarification.
You have the right to dispute any information contained on your credit report. This is done by writing the CRA. The CRA then is required to verify that information with the furnisher. They have 30 days by law to do so. If such information cannot be verified, it must be deleted.
Note that whether the account is "really" yours or not has no bearing on their responsibility to verify it. If it cannot be verified, it must be deleted. Period.
You also have the right to "validation". This is demanding that the creditor reporting the information prove to you that the account is really your responsibility, and that the balances, etc are accurate. In the case of collection agencies, they must also prove that they have legal right to collect the debt.
They must STOP all collection activity, including reporting and verifying, until they supply proper validation to you after a written request. Although no time limit is specified for them to validate, they cannot continue collection activities until they provide such. Sometimes, Collection Agencies will stop collection activities and return the account to the original creditor rather than validate. (This is perfectly legal.)
*You do NOT have legal right to validation under the FDCPA when dealing with an original creditor. They may supply validation at their option, but are not required to do so. However, you do have the right under the FCRA to dispute directly with an original creditor any information reported that you feel is incorrect. This can be found in section 623. Once they have received your dispute, they must investigate the reported info and, they must also report the acct as disputed with the CRAs.
You may also have additional rights under the Fair Credit Billing Act (FCBA), and possibly your
state's laws.
If you demand validation from a creditor who is already listing a derogatory tradeline on your credit report, they are required to note that account as "disputed by consumer" (or similar language). They may NOT place a new listing, or verify a current listing with the CRA until they have provided you with validation.
It is most always a good idea to send validation demands via CMRRR.
(Certified Mail Return Receipt Requested) as this gives you proof, in the form of a receipt ("green card") that your demand was received, and on what date.
Sample Validation Letters Disputing with the Credit Bureaus
It's never appropriate to be dishonest with a CRA (or anyone else).
There are ways to accomplish your goals while remaining 100% truthful and honest and it's the much more effective anyway!
For example, while it may be tempting to dispute a known account as "not mine", it's a better option to instead make a request that it's validity be proven.
"Please provide documentation that this account is accurate and belongs on my report".
Also be very careful in what information you supply to the CRA's. If you supply court papers or collection statements in an attempt to correct your report, you may find those very papers used against you later! You will have difficulty questioning an account that you previously verified yourself.
Sample Dispute Letters
They have 30 days to verify their information, correct the information or delete the account. You will be provided with the results of their investigation and a new copy of your report (if anything has changed) after the investigation is complete.
If you have any questions, please feel free to ask in the forums! (Just remember to always search first, as someone may have already asked that question!)
Also, please feel free to share your success stories and help others with their questions!
Good Luck on your credit repair journey!
Chane