How Long Is Debt on Your Record?

As you open new credit and loan accounts and incur debt, your creditors report the status of those accounts to the credit bureaus. The credit bureaus maintain these records on your credit files until the reporting period for each expires or you successfully dispute the account's validity. The credit reporting period varies depending on the type of debt you owe.

Credit Reporting Period

Section 605 of the The Fair Credit Reporting Act (FCRA) establishes the reporting period for each type of debt. With few exceptions, debts remain on your credit record for seven years and 180 days from the date you made the last payment on the account -- regardless of whether the account is in positive or negative standing. The seven-year reporting period applies to credit-card debts, loans, collection accounts and judgments.

Reporting Period Exceptions

Certain types of derogatory information remain a part of your credit history for longer than the standard seven-year reporting period. The FCRA allows evidence of previous bankruptcy cases, for example, to remain for 10 years. Unpaid tax liens are another exception to the rule. An unpaid tax lien can appear on your credit record for longer than any other item -- up to 15 years.

Credit Score Impact

Recent accounts command greater importance in the Fair Isaac Corporation's credit scoring system than older debts. Recent accounts include those that were recently updated by a payment. Thus, a credit-card account you pay each month influences your score to a greater degree than a vehicle loan you paid off five years previously.

This credit scoring method is beneficial for those trying to repair their credit scores after making past debt-management mistakes, since derogatory information has less of a negative impact over time. Once the credit reporting period expires and the credit bureaus remove a debt from your records, the account no longer has any impact on your credit scores.

Early Removal

In the interest of helping consumers maintain the most accurate credit information possible, the FCRA gives all individuals the right to dispute debts on their credit reports. If you discover an account you do not recognize or know for a fact does not belong to you, you can contest the debt's validity with the credit bureaus online, via mail or by telephone.

After the credit bureau receives your dispute, federal law provides it with 30 days to contact the information provider and investigate the account's validity. If the information provider does not respond to the request or acknowledges its error, the credit bureaus will delete the contested account from your credit record before the federal reporting period expires.