Is your credit wiped clean after 7 years?

Per the Fair Credit Reporting Act (Federal law) derogatory accounts show for 7-years from the date of first delinquency which works out to 7-years and 180-days. The exceptions are bankruptcy's (10-years), student loans (until they are paid), tax liens (15-years) and judgments (either 7-years or whenever the statute of limitations runs out whichever is longer).

Now if on the other hand the information is not true and correct you can go to the credit bureaus web sites and dispute it and if whoever is reporting this information doe's not respond with proof that the information is true and correct within 30-days it will be removed.

O.B.T.W. your Mom is wrong, bankruptcy shows for 10-years not 7.

After 7 Years Credit Report

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RE :Is your credit wiped clean after 7 years?

I just paid two outstanding bills I have had for like 5 years. When I told my mom, she said that my credit would be wiped clean anyway in 7 years from when the debt was owed. I was like what? Because I would have like 2 years left. I knew she had told me that filing bankruptcy goes off your record in 7 years. She said she had talked to a lawyer about it. It is not that I do not want to pay my bills. It is that I currently can not afford the ones that are not immediate living expenses. Although I immediately need to get approved to move out of my moms.

Follow 8 answers

I know this is going to confuse you based on some of the others answers.

Your debt is removed from your credit file after 7 yrs. That does not mean the debt 'disappears'. The debt is still there and people can try to collect it. However, they can never add it back to your credit report and after the statute of limitations runs out, they can not sue you to collect the money.

Also if a debt is 5 yrs old, the impact on your score is much less than when it was under 2 yrs old. And paying those two debts off will do nothing to improve your score... and I mean nothing.

You would do better to save the money you have rather than paying off anything else. If your score is too low, start getting something positive added. You can get a secured card. Keep balances under 30% and your score will start to improve quickly.

You can read more about how to start getting things positive added here: http://www.comebackcredit.com/no-credit-credit-car...

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RE:

Is your credit wiped clean after 7 years?

I just paid two outstanding bills I have had for like 5 years. When I told my mom, she said that my credit would be wiped clean anyway in 7 years from when the debt was owed. I was like what? Because I would have like 2 years left. I knew she had told me that filing bankruptcy goes off your record...

Bankruptcy is 10 years. A charge off stays on fill for 7 year 180 days. A collection agency can call in regards to the debt for the next 50 years but they just can not sue you in court after so many years.

It's a rolling history of 7 to 10 years.

Your mother simply misunderstood what the attorney had told her.

The real deal is that creditors can continue to collect on overdue and unpaid debts till infinity. The only hook is that if they ever stop trying to collect and then leave the debt sit until the statute of limitations runs out - then they may no longer attempt to collect the debt.

The statute of limitations varies from one state to another. But, I've seen where people were paying on old debts that were 10 years old.

bankruptcy stays on your credit report for possible 10 yrs - it's been 9 yrs for me and it's still there, but it hasn't affected my credit in over 4 yrs - I got 3 house loans/mortgages - 2 for investment properties and some land and got a low rate car loan in the last 50 months

Statue of limitations how many years in UK?