Does bad debt stay on credit report after 7 years or is it supposed to come off?
Hi melagumu,Debts that are past the Statute of Limitations (SOL) in your state are meant to fall of your report. Sometimes, creditors forget to or simply do not remove items from your credit report even if those have been past the Statute of Limitations (SOL) in your state. Hence, if a debt is reflected on your credit report it will affect your score too. This is the reason why you are required to check your credit report at least once a year or may be twice to see if there is anything wrong with it. If you see any items past the SOL or any misinformation like a debt which is not yours, you should immediately dispute it and get it removed. Unless you do this, your score will only drop instead of looking up.After 7 years...starting at the date of default., the slate is wiped clean and it comes off your credit report....There is gigantic confusion over this issue.....but really, it's 7 years from the date of default....This time period can never be restarted. It doesn't matter if the debt passes though 1,000 different collection agencies or if you later make a payment on the account....there will still only be one 7 year time period and that starts at the date the default happened.
Hi melagumu,Debts that are past the Statute of Limitations (SOL) in your state are meant to fall of your report. Sometimes, creditors forget to or simply do not remove items from your credit report even if those have been past the Statute of Limitations (SOL) in your state. Hence, if a debt is reflected on your credit report it will affect your score too. This is the reason why you are required to check your credit report at least once a year or may be twice to see if there is anything wrong with it. If you see any items past the SOL or any misinformation like a debt which is not yours, you should immediately dispute it and get it removed. Unless you do this, your score will only drop instead of looking up.After 7 years...starting at the date of default., the slate is wiped clean and it comes off your credit report....There is gigantic confusion over this issue.....but really, it's 7 years from the date of default....This time period can never be restarted. It doesn't matter if the debt passes though 1,000 different collection agencies or if you later make a payment on the account....there will still only be one 7 year time period and that starts at the date the default happened.