Many people want to know how long a negative notation will stay on their credit report. The answer to this is seven long years. If you have a bankruptcy or judgment the notation can stay on your report for up to ten years.
For many people this feels like a heavy prison sentence. During this time they are afraid to try and move out of a cramped apartment or upgrade from an old junker of a car.
Seven years - why?
Should a single slip-up deserve a seven year punishment? Should you have to live with a bad credit report for being out of work for a few months, even when we caught up on our bills soon after?
Is there something about seven years that will make you credit worthy again? Have experts learned something about how after seven years have elapsed that makes me more deserving of credit?
No, there is no solid reasoning behind the seven year reporting limit. It is a whimsical time limit.
Did you know that before the Fair Credit Reporting Act the credit bureaus had no time limit to how long a negative mark could remain on your credit report? In reality a negative mark remained on your credit report forever.
Finally, Congress placed a time limit on the bureaus. Please do not be confused that seven years is how long an item must remain on your credit. Seven years is the reporting maximum.
Congress made it illegal for credit bureaus to report a bad credit mark for longer than seven years. Frequently people have successfully had a negative mark removed long before the seven year time limit.
Reporting to the credit bureaus is completely voluntary. Creditors and collection agencies are not required to report any notations or accounts to the bureaus. As well they often remove notations and accounts long before seven years.
Creditors and collection agencies usually just need a little encouragement from a compelling dispute letter or a good credit repair attorney. Plus, the credit bureaus perform credit repair on your report at the seven year mark.
In a utopian society there would be no time limits on credit reporting. Instead, marks would remain as long as they truly reflected the applicant. Information found on a credit report would only provide accurate marks about the applicants' credit worthiness. Instead of being an excuse for a creditor to give you unreasonable interest rate or down payment.
Just like there is no good reason for the seven year time limit for a negative notation to be on your credit report. There is no good reason why we should not make efforts today to remove negative information from our credit report.
About the Author:
To learn more about online credit repair or how you can improve credit score visit us.
The next Internet
0 comments:
Post a Comment