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Success with Subprime
by Brian
Sacks
Do you have a question for Mr. Sacks? E-mail
it to brian@loanofficersuccess.com.
Click here
for more articles by Mr. Sacks.
Consumer Credit Counseling
How Long Does Information Stay on a Credit Report?
Credit information can, and usually does, stay on a person's
credit report for seven years. Collections stay on the report for seven years from the date of last activity –
whether that is the date that the account was filed as a collection or the date the account was paid in full. Here's
an example:
"Jane Borrower" had a collection for $300
filed against her in October of 1994, and she hasn't paid it. It is now September of 2001, so in a few weeks that
collection can come off of her credit report. (She will probably have to request of all three credit bureaus that
they take it off.) However, Jane has applied for a loan today, and the loan officer tells her that she has to pay
off that debt in order to be approved. Since she has the money, she pays it off. Because the date of last activity
is now September 2001, the collection will show on her report until September 2008 – another seven years.
Bankruptcy information can stay on a credit report for
ten years. Information about foreclosures is reportable for twelve years from the date filed. Garnishments, judgments,
and tax liens can stay on the report for twelve years from the date of entry or for seven years from the date they
were satisfied. Dismissed garnishments, judgments, and tax liens are not reportable.
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Type of Information
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Length of Time Can Stay on Credit Report
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| General credit information |
Seven years |
| Collection |
Seven years from date of last activity |
| Bankruptcy |
Ten years |
| Foreclosure |
Twelve years from the date filed |
| Garnishment |
Twelve years from the date or entry or seven years from the
date satisfied |
| Judgment |
Twelve years from the date or entry or seven years from the
date satisfied |
| Tax lien |
Twelve years from the date or entry or seven years from the
date satisfied |
| Dismissed garnishments, judgments, and tax liens |
Not reportable |
A consumer can request copies of his or her credit report
from the three credit bureaus and dispute information that is incorrect. Incorrect information can be corrected
or removed, but correct information (good or bad) usually stays on the report for the period allowed. Only the
credit grantor or credit bureau can remove correct information – the consumer cannot remove it.
Click here
for more articles by Mr. Sacks.
Visit Brian Sacks's web site at www.loanofficersuccess.com.
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