Bad credit is not forever! Credit listings generally lose status after a period of time, usually seven years from the date of last payment, then disappear from your credit report. Bankruptcy can stay on your credit report for ten years. Unpaid liens can stay on your credit report for up to fifteen years. This is regulated by the FCRA. If a creditor lists an account on your credit report after the mandated time period, send a letter to the credit reporting agency, remind them of the time frame. If there is an account is listed on your credit report that is paid off send proof to the credit bureau that it is paid. That may be all that is needed to repair your credit report.
Statute of Limitations
Accounts lose legal status as well. Check the statute of limitations on an old debt before you settle or pay it. In California the statute for contracts and some retail credit is four years. Check your state registrar or legal counsel for your locality for local statutes. If you are manicuring a credit report be cautious about paying off old debt. Some credit scoring systems may penalize you for a current payment on an old account. If you settle a debt off after the statute has run out, try to settle for a lower amount.
After the specified period of time (since the date of last payment) the holder of the debt may no longer institute legal proceedings. If you make a payment on an an account after the expiration of the statues of limitations for your state or the state where the transaction was originated, even one penny, the creditor may be again able to file a law suit and garnish your wages. Collection agencies have been known to threaten folks with suit on old debt.
Some lenders will remove recent late payment listings with good cause (new address, returned mail, etc…) Always keep copies of bills you’ve paid and record dates of payment. If you notice a late payment on your credit report that shouldn’t be there write to your lender, ask them to remove the listing or give you a written reason why they feel it should remain. You can also dispute the listing with the credit bureau.
What does credit repair do?
It is your responsibility to make sure listings on your credit report are accurate. If you feel a listing is not correct you can either address a letter to the credit bureau or the lender. You may prefer assistance from credit repair kits or services to correct incorrect listings on credit reports. My suggestion is you check out credit repair The service they offer can simplify credit repair for the novice. You pay a small monthly fee and a law firm disputes inaccuracies on your credit report.
Inaccurate credit report listings
You may have credit listings that are incorrect or don’t belong to you! A change in circumstance like a divorce or loss of a long term job can cause the most responsible of people too get behind on their bills. Bad credit does not mean you’re a bad person! Get informed, the wrong thing to do is nothing! The information provided by this site can make a difference! Research and learn about your credit. Save money on your next major purchase by learning about credit and raising your credit score!
Living in Debt
We all seem to live beyond our means at one time or another. My eleven year old daughter’s weekly allowance doesn’t seem to make it to Saturday sometimes. A recent government survey show 67% of home mortgage loan refinances are used to pay off debt. Most people don’t pay the new debt off even though the interest on their new home loan is lower. They accrue new debt because their credit cards are open. You may save a fortune by simply getting disciplined and paying off your debt. I found a debt management agency that will help you organize a plan to pay your debt off. They say they can sometimes lower interest and late charges. They are paid by the lender so there is no cost to you! I would note if you do this type of debt restructuring you should not plan on purchasing anything on credit until the plan is complete.