How Long Can Credit Information Remain on a Credit Report?

For many individuals, credit is an important part of life. Before financing is extended, credit reports and credit histories are checked. The information that is on those reports will be used to determine whether or not an individual is creditworthy enough to have credit extended to them. For this reason, it is important to check credit reports on a periodic basis to make sure that the information on them is accurate and not out-of-date.

Significance

Whenever an account gets opened, credit history begins. This account can be for a home loan, refinancing or a credit card account. Whenever any kind of activity takes place, it gets recorded on the credit report. This includes both payments that are made on time, as well as payments that are late. When a credit report is viewed, the entire history of all the accounts will be visible. Information on the credit report can also be from accounts that have been defaulted upon and accounts that have been closed.

Time Frame

The length of time that information can remain on a credit report varies. In the case of Equifax, one of the three major credit reporting agencies, accounts that were paid according to the original contract stay on file for up to 10 years. Accounts that were not paid off according to the contract remain on file for seven years from the date that there was last activity logged onto the account. Accounts that are submitted by collection agencies also remain on file for seven years from the date there was last activity recorded.

Public Records

Judgments stayed filed for seven years from the date that the judgment was filed, regardless of whether or not the judgment was paid off. Paid tax liens will be found on file for seven years from the date they were paid, but unpaid tax liens have no time limit. They can remain on the credit history indefinitely. In the case of bankruptcies, these can vary. Chapter 7 and 11, as well as any non-paid Chapters 12 and 13, will be on file for 10 years from the filing date, while Chapters 12 and 13 that have been paid off will remain on file for seven years.

Monitoring

It is important to monitor credit reports on a regular basis, as inaccurate information can cost money. Under Federal law, each of the three major credit reporting agencies -- TransUnion, Experian and Equifax -- have to provide a free copy of an individual's credit report, when requested, once a year. Checking to make sure that there is no outdated information to be found is important.

Prevention/Solution

To prevent inaccurate information from remaining on a credit report, it must be disputed. Any inaccurate or outdated credit information found on a report should be reported to the reporting agency immediately. Documentation will have to be provided to substantiate the dispute, and if it is cleared up, a new credit report will be provided at no charge, with the new information added to it.