When Do Things Go Off Your Credit Report?

A few years of abusing your credit can have much longer implications, especially if you are looking to buy a home, car or just need a loan in general down the road. Items on your credit report determine your credit score. A good credit score means your bank will give you a better interest rate. Conversely, a bad score gives you a worse interest rate. Negative items can last from seven to 10 years, and some items have no time limits.

Seven Years

Some items that will take seven years to come off your credit report, according to the Fair Credit Reporting Act. Examples include civil suits, judgments, records of arrest, collection records, and accounts that are closed with a negative record of foreclosure records. Furthermore, any late payments and repossession records will remain on your record for seven years.

Ten Years

There is only one item serious enough to warrant staying on your credit report of 10 years, according to the Fair Credit Reporting Act, and that is bankruptcy filings. While Chapter 7 (liquidation) will stay on your credit report for 10 years, Chapter 13 (reorganization of debts) can come off your record after seven years, but only at the discretion of the credit bureau.

No Limitation

Some items are exempt from time limitations on your credit report. According to the Fair Credit Reporting Act, information that is reported because of the following reasons are exempt from a time limit: credit transactions with a principal amount of $150,000 or more, underwriting a life insurance with a value of $150,000 or employing a person who has an annual salary of at least $75,000.

Reporting Errors

It is recommended to check your credit report on a regular basis to ensure there are no errors. Any error can have a negative impact on your score. Order your credit report from one of the major credit bureaus TransUnion, Equifax and Experian. If you see an error, such as your bankruptcy still on record even though it is 12 years later, report it right away. Your score will the adjusted accordingly.