Most items, positive or negative, remain on your credit record for a minimum of seven years. This information can affect your credit score negatively. Sometimes you may have an old debt still sitting in your credit report that shouldn't be there. You should know what types of items can remain in your report and for how long they can be reported.

Why It Matters: Knowing what's in your credit report, and how long it can be there, is important because it helps you manage your credit, evaluate your credit obligations and improve your credit rating.

What You Need to Know:

1. What is a charged-off debt? It is basically a bad debt. A lender will classify a debt that is unpaid as a charged-off debt in your credit report.

2. What is the seven-year rule? Basically, items remain on your credit report for seven years with some exceptions:
   • Information about criminal convictions can remain forever.
   • Bankruptcy information can remain for 10 years.
     
   • Information reported in response to an application for a job with a salary of $75,000 or higher may remain forever.
     
   • Information reported in response to an application for life insurance or credit of more than $150,000 can remain forever.
     

   • A judgment or lawsuit against you can remain in your report for seven years or until the statute of limitations runs out, whichever is longer.

3. When do the seven years start? The clock starts counting from the final date of the action that commenced a charge-off, profit and loss, or similar action. The law was changed in 1996 because it used to state that the seven years began on the date of last action (DOLA). This led to a great deal of confusion, prompting Congress to reform the law.

4. Can I have an old debt removed? Yes! And you should have it removed to prevent it from further damaging your credit. You need to contact the credit bureau directly and indicate in a letter that you think an item is due to be removed. Specify exactly what item you are referring to. They are required by law to investigate your claim and submit a report of their investigation to you. Be sure to include your date of birth and Social Security Number when you write to them so they can identify your file.

Steps to Take:

1. Order a free copy of your credit report from http://www.annualcreditreport.com/ and check it for errors and old debts. You are legally entitled to a free report from each of the credit bureaus when you use the Annual Credit Report Request service.
2. Keep detailed records of any communication you have between yourself and any creditor or credit bureau. Conduct all of your communication in writing.
3. Learn more about your rights concerning credit at www.ftc.gov/credit.

Select a link from the list below to begin learning more about your credit.

Get a FREE Copy of Your Credit Report
It’s Never Too Late to Repair Your Credit
Inside Your Credit Report
What’s In Your FICO Score
What Is Good Credit
Establishing Good Credit
How to Improve Your FICO Score
Using Credit Cards Wisely
30 Reasons Your Credit Score Is Low
Repairing Your Own Credit
Judgment Strategies
Facts About Credit Inquiries
Your Rights Regarding Debt Collection
Divorce and Credit
Coming Back After Bankruptcy
Charge-Off Debt & the Seven Year Rule
Top Ten Do's and Don'ts During the Loan Process
Identity Theft and the FACT Act
CRC – What You Can Expect