When Can a Debt Come Off My Credit Report?

Outstanding debt on a credit report is not always a bad thing, because you can usually wait until the credit bureaus no longer report it. However, you cannot escape all bad debts, so paying them could be a better alternative to having it dragging down your score for the rest of your life. You also have to watch out for creditors or collection agencies, because they may try to get you to claim an expired debt.

Identification

When a debt comes off your credit report depends on its status. A charge-off or account in collections stays on your report for seven years. Debts eliminated through Chapter 7 bankruptcy disappear as soon as you file bankruptcy, but the bankruptcy itself stays for 10 years, seven for a Chapter 13. Unpaid tax liens can remain forever, and judgments can be renewed indefinitely in some states but do not renew the credit reporting time limit.

Statute of Limitations

Charge-off and collection accounts fall off seven years from the date the original creditor declares it noncollectable forever, but you can renew the statute of limitations on a debt. This can happen by making a payment on the account after the statute of limitations passes or just acknowledging the debt is yours. Debts never go away, but the statute of limitations prevents any lawsuit, so most debts have an effective expiration date.

Considerations

As long as you keep making payments on a debt, it will not become delinquent and remain on your credit report for as long as you carry a balance. Even if you have a debt deemed noncollectable on your report, it becomes less important far before the seven-year reporting limit. Most negative items hold their greatest weight during the first two years after the incident and then take a backseat to newer information.

Tip

Review your credit report to ensure you actually owe the debts listed. The credit bureaus have been known to list debts from other people on an unrelated account. If you see an erroneously reported debt, dispute it with the credit bureaus. Assuming you win your case, the credit bureau will remove the debt from your report.