How Long Can This Report?

How long can the credit bureaus keep a negative item on my credit report and what actions will restart that date? On this issue, there is much confusion. Almost every so-called credit repair expert has a different opinion regarding the actual credit reporting period allowed by law.

Most negative listings may be kept on your credit report for a period of 7 years beginning on the date that you were last reported late before they repair themselves. This means that if you were late every month from March to August of 1995, that your date of last activity would be on August of 1995. In this case, the item would be due to "fall off" on August of 2002. You don't have to live with 7 years of bad credit.

There are several exceptions to the seven year rule. Bankruptcies may be reported for 10 years from the date that the bankruptcy was discharged. Liens and judgments may be reported for seven years or until the statute of limitations in that state (usually between seven and ten years) runs out, whichever is longer. However, credit bureaus usually keep these listings on the report for the seven year period regardless of the local statute of limitations, unless you repair them first.

The other interesting exception is in the case of a negative listing that has been sent to collections or has been charged off. The seven year limit begins 180 days after the last late payment before the account was charged off or sent to collections. In other words, if you didn't pay a certain bill from January to March, and the creditor sent the account to collections in June, then the negative listing could remain on your report for 7 and 1/2 years from that last payment in March unless you repair your credit first.