Negative credit report information does not have to remain on a consumer’s credit report indefinitely. More and more Americans are in the process of repairing their credit report in light of easy access to credit and the burgeoning costs of day-to-day life. Even the most serious financial delinquencies are governed by certain statute of limitations that would cause negative information to automatically fall from a credit report.
What Time Limits Are Established by the Fair Credit Reporting Act?
The Fair Credit Reporting Act (FCRA) governs the rules pertaining to the credit report and also delineates the amount of time certain negative information would remain on the credit report. Negative information such as late payments and missed payments must fall from the credit report after seven years. Certain public information, such as bankruptcies must fall from the credit report after 10 years, though a foreclosure remains for seven years. Some information providers attempt to toll, or extend the time, of the delinquency in certain circumstances—often in ways that run counter to the FCRA or are open to debate. The FCRA indicates that:
- Open accounts with no negative history remain indefinitely
- Closed accounts with not negative payment history remain 10 years
- Chapter 13 bankruptcy remains seven years and chapter 7 bankruptcy remains 10 years
- Credit inquiries remain for two years
Fortunately, you do not always have to wait passively for negative marks to fall off of your credit report. In some cases, your attorney may be able to negotiate a settlement in which you pay all or part of your debt in return for the party you owed money to directing the credit agency to delete the record.
Call a Salt Lake City Credit Repair Lawyer for More Information
Running up credit debt is easier than ever to do in America and having that information reported to credit agencies can be inevitable. Fortunately, this negative information can fall from the credit report after a designated period of time and effectively managed in the meantime. Receiving effective financial advice before incurring debts and after debts are reported can help consumers get back on the right financial track. To schedule a free consultation with a Salt Lake City Credit Repair Lawyer, call JLT law today at (801) 896-9444 or send us an email through our online contact form.