The length of time items stay on a person's credit history is ruled by several guidelines, Most people are concerned with the negative credit information, which remains on a person's credit report for seven years and then is removed; however, there is other information, such as concerning bankruptcies, which remains on a credit report for a longer time.
What Lenders Look For
In general, a person needs to have at least 12 months of established credit history to apply to borrow money. Lenders will typically look for a minimum of three lines of credit within two years. Creditors are required to report on your credit history for up to seven years; however, lenders can look at your entire history for reference, if available.
Having No Credit History
Young adults and immigrants to the United States are often in a position of having no (or "zero") credit history, and must work to build one before being allowed to borrow funds. Typically, the best way to do this is to obtain a credit card and make payments on time (see Reference section). The longer the credit line receives on-time payments, the more credit history will be established. The more good credit history is established, the better the credit report appears.
Credit Accounts
Accounts on which payments have been met (positive information) stay on file in credit history reports indefinitely, but can be dropped after seven years if there is no activity on them. Accounts not paid (negative information) will remain for seven years.
Public Records
Court judgments (whether paid or not) and paid tax liens (from the date paid) will stay on a person's credit history for seven years; however, unpaid tax liens remain permanently. Bankruptcies under Chapters 7, 11 and 12, as well as bankruptcies dismissed, remain for 10 years from the date they were filed. Chapter 13 bankruptcies (where all or part of the debt has been repaid under a payment plan) will be dropped after seven years. Most other public records are deleted after seven years; however some states have specific laws regarding how long credit history will remain on public records (i.e., New York and California).
Collection Accounts
Reports from collection agencies will stay on a person's credit history for seven years.
Inquiries
An inquiry into your credit history, made by yourself or an outside source, will show up on credit history reports. Depending on the type of inquiry requested, these will be dropped from the report after one or two years.
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