A missed payment will appear on your credit report for seven years. This is an important fact as you consider future financial plans. For example, buying a home may not seem important to you when you're young or in college, but seven years later the credit required to make a major purchase may be a priority. The idea is to take care of your credit today just in case you need it later.
Accuracy
As a matter of practice, you should check your credit report on a regular basis, looking for any inaccuracies. According to the Fair Credit Reporting Act, or FCRA, only factual information can remain on your credit report for seven years.
Challenge Mistakes
If you find anything on your credit report that is outdated or incorrect, you have the right to challenge it. It then becomes the duty of the credit bureau to verify that the information contained on your report is correct. Send a certified letter to the credit bureau, clearly outlining the mistakes, and keep a copy for yourself. The credit bureau must then contact your creditor. The creditor must be able to provide verification precisely as it appears on your report and report back to the credit bureau. The credit bureau has 30 days to gather this information . If bureau officials are unable to verify that the negative credit remark is accurate, they must promptly delete it from your report.
Three Major Bureaus
TransUnion, Equifax and Experian are the three major credit reporting agencies. Websites such as AnnualCreditReport.com offer consumers one free copy of reports from each agency once a year. Check all three credit bureaus for any inaccurate information and contact each agency separately regarding any mistakes on the report.
The Seven-Year Clock
The seven years begins at the time you miss your first payment. The FCRA says anyone trying to collect a debt cannot do anything in an attempt to extend the time a negative remarks stays on your credit report.
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