Under the Fair Credit Reporting Act, your creditors have the legal right to report both negative and positive aspects of your bill-paying history, according to the Federal Trade Commission. However, even if you didnt pay your bills as agreed, you still have a number of rights regarding any derogatory credit reports issued in your name.
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Function
Credit reports, including any derogatory information, are used to determine everything from whether you can receive a mortgage loan to the rates you must pay for a car insurance policy, according to the Consumer Federation of America.
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Types
Negative credit reports can range from a loan payment made at least 30 days late to unpaid medical accounts turned over to a collection agency, according to Experian.
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Time Frame
Almost all negative credit information can be legally reported for seven years from the date of original delinquency, according to Experian.
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Exceptions
Chapter 7 bankruptcies can be legally noted on your credit report for 10 years from the date you declared insolvency, according to Experian. Some tax liens and lawsuits can report for 10 to 15 years, depending upon the nature of the case and whether it was eventually paid.
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Considerations
You can legally dispute any inaccurate credit reporting information, according to the Federal Trade Commission. Generally, the reporting agency or the creditor providing the information must investigate your dispute within 30 days of receiving it.
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