Certainly, it is your dream (and everyone else’s) to ensure that all the information in your credit report be as positive as possible so you can get a high credit score. But whether it is due to these economically trying times or sheer lack of financial planning, bills can get paid late, mortgage or tax payments can be defaulted, or worse, bankruptcy gets filed. All these are negative items that will mar your credit rating. They will also stay in your credit report for a certain number of years even after you have settled your obligations.
However, according to the Fair Credit Reporting Act or FCRA as enforced by the Federal Trade Commission (FTC), the credit bureaus must stop reporting the negative items from your credit report after their statute of limitations has passed. For example, any late payments you have made on any of your debts will stay on your credit report for up to seven years while bankruptcies have a prescription period of anywhere from seven to ten years. Foreclosures and repossessions, missed child support payments, and paid tax liens will appear in your credit report for seven years. If there is any lawsuit filed against you for which the court has issued judgment, that can stay in your report for seven years but if you still don’t pay your obligations, this item can continue to appear for twenty years.
This program is ideal for anyone interested in real and lasting credit improvement.
There is no prescription period for criminal convictions against you, a job application that gives out a salary of more than $75,000 annually, or a credit or life insurance application that is worth more than $150,000. These types of information will stay in your credit report forever.
More on Credit Reports Demystified