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Do You Have Credit Boo Boos?

poor credit Does your credit look like a train wreck? I've talked to several clients recently who hit a rough spot - and are working their way out. They had some questions I thought other people might need answered too!

How long does negative information stay on a credit report?

The Fair Credit Reporting Act says that negative information can stay on your report for a minimum of seven years (I always thought that said MAXIMUM - but I was wrong). There are some exceptions to this:

* Delinquency information like late payments remain for seven years from the DATE OF DELINQUENCY.

* Charge-offs stay for seven years PLUS 180 days from the date reported to the credit bureau.

* Student loan defaults report for seven years.

* Foreclosures stay on your report for seven years. The seven year rule also applies to Law suits, judgments and paid tax liens.

* Bankruptcy stays for 10 years from the date you file.*

* UNPAID TAXES stay on your report for 15 years! Ouch!

Posted by Eleanor Thorne 919-649-5057 Cary Mortgage Loans on 02/27/2008 02:07 PM

Comments (7)

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Originally posted at: Mortgage Lending, NC Style: Do You Have Credit Boo Boos?

This post has been included in North Carolina Information Wake County, NC Information Cary, NC Information

7 Comments on Do You Have Credit Boo Boos?

FEB

2008

Hi Eleanor - Thanks for the information, customers are always asking me questions about issues on their credit reports.

Now with new restrictions it is more important than ever to have clean credit. Great information. Thank you for looking it up Eleanor.

thanks for the updated info - i didn't know that unpaid taxes stayed on for 15 yrs. good info!

I didn't know about the taxes either! Thanks Eleanor - you always have the good tips and advice!

FEB

2008

Eleanor - I did not know about some of these. I only have one word - yikes!!

MAR

2008

These are sobering figures. Looks like we will be dealing with this foreclosure market for years to come.

I read that 2 of the 3 major reporting bureaus have started to re-visit their reporting policies. For people with good credit, their rating should just get a little better. For people with bad credit, there shouldn't be much change.

One thing is certain, as we ride this tidal wave of foreclosures, the entire credit reporting system will have to be revamped or at the very least mortgage underwriters will have to build in a certain tolerance for a foreclosure on someone credit report. Millions of Americans are losing their homes to foreclosure - it's time for changes.

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