The length of time that negative information can remain on your credit report is governed by the federal Fair Credit Reporting Act (FCRA). Most of it must be taken off after seven years. Some items, such as bankruptcy, can remain for up to 10 years, and other items, such as civil judgments or tax liens no longer are reported at all. Following are eight types of negative information that may appear on your report, with suggestions on how to lessen their damage.
Key Takeaways
- The Fair Credit Reporting Act (FCRA) governs the length of time that negative information can remain on your credit report.
- Most negative information stays on your credit report for seven years, while a few items remain for up to 10 years.
- You can limit the damage from derogatory information even while it is still on your credit report.
- Removal of a negative item from your credit report does not mean you no longer owe the debt.
Hard Inquiry: Two Years
A hard inquiry, also known as a hard credit check or hard pull, happens when you apply for credit and the lender requests your full credit report from a credit bureau. That is not necessarily negative information, but it can deduct a few points from your credit score, and too many hard inquiries will add up. Fortunately, they remain on your credit report for only two years following the inquiry date.
Limit the damage: Bunch up hard inquiries, such as mortgage applications, in a two-week period so they count as one inquiry. Credit scoring models don't punish you in that case because they assume you're just shopping around for one loan, not attempting to get several at the same time.
Delinquency: Seven Years
Late payments (usually more than 30 days late), missed payments, and accounts that have been turned over to a collection agency can remain on your credit report for seven years from the date of the delinquency.
Limit the damage: Be sure to make payments on time—or catch up. If you usually are up to date but happened to miss a payment, call the creditor and ask that this rare lapse not be reported to the credit bureaus.
Charge-Off: Seven Years
When a creditor writes off your debt following nonpayment, this is known as a charge-off. Charge-offs remain on your credit report for up to seven years from the date of the first missed payment.
Limit the damage: Try to pay off all or a negotiated amount of the debt. The ding to your credit won't be removed, but you likely won't be sued.
Student Loan Default: Seven Years
If you default on a student loan, that information will remain on your credit report for seven years from the date of default. Private student loans can go into default after three months of nonpayment, while federal loans don't go into default for nine months.
Limit the damage: If you have federal student loans and are having trouble repaying them, the Department of Education has a variety of programs that are worth exploring, such as loan rehabilitation, loan consolidation, and different repayment plans. If you rehabilitate the loan, you can have the default removed from your credit report, although the record of late payments will remain. With private loans, contact the lender and request modification.
Foreclosure: Seven Years
Foreclosure is when your lender takes ownership of your home for failure to make timely payments. This stays on your credit report for seven years from the date of the first missed payment.
Limit the damage: Make sure you pay your other bills on time and take steps to rebuild your credit.
Bankruptcy: Seven to 10 Years
The length of time bankruptcy stays on your credit report depends on the type of bankruptcy, but it generally ranges between seven and 10 years. Bankruptcy, known as the “credit score killer,” can knock 130 to 150 points off your credit score, according to FICO. A completed Chapter 13 bankruptcy that is discharged or dismissed typically comes off your report seven years after filing, though in rare cases it may remain for 10 years. A Chapter 7 bankruptcy will hang around for 10 years.
Limit the damage: Don't wait to start rebuilding your credit. Get a secured credit card, pay any accounts that weren't discharged in the bankruptcy as agreed, and apply for new credit only once you can handle the debt.
Lawsuit or Judgment: Not Reported
Both paid and unpaid civil judgments used to remain on your credit report for seven years from the filing date in most cases. By 2018, however, the three major credit bureaus, Equifax, Experian, and TransUnion, had removed all civil judgments from credit reports.
Limit the damage: Check your credit reports to make sure the public records section does not contain information about civil judgments. If you find one, ask to have it removed.
Tax Lien: Not Reported
Paid tax liens, like civil judgments, used to be part of your credit report for seven years. Unpaid liens could remain on your credit report indefinitely in almost every case. Since 2018, all three major credit bureaus removed all tax liens from credit reports due to inaccurate reporting.
Limit the damage: Check your credit report to ensure that it does not contain information about tax liens. If it does, file a dispute with the credit bureau to have it removed.
Frequently Asked Questions
How Can You Obtain Your Credit Report?
You can get copies of your credit reports from all three major credit bureaus—Equifax, Experian, and TransUnion—at the official website, AnnualCreditReport.com. By law, you are entitled to a free report from each bureau at least once per year.
Note
Through the end of 2023, all three major credit bureaus—Equifax, Experian, and TransUnion—are providing free weekly online credit reports at AnnualCreditReport.com due to potential financial difficulties from the coronavirus pandemic.
Can You Have Negative Information Removed From Your Credit Report?
No, there is nothing you can do to have negative information removed from your credit report before it normally would drop off unless the information is inaccurate. If you find erroneous information, you can dispute it with the credit bureau, which is required to investigate the matter and get back to you. All three major bureaus explain that process on their websites, and you usually can file your request online.
What Is the Statute of Limitation on Debts?
Most states have statutes of limitation on debts, typically three to five years, after which debt collectors no longer can take legal action against you. However, they still can attempt to collect those debts in other ways, and the debts will remain on your credit reports until they drop off due to age.
The Bottom Line
While most negative information eventually will disappear from your credit reports, there is little you can do to speed up the process unless the information is in error. For that reason, it's best to keep paying your bills on time to prevent negative information from getting on your credit report in the first place.
