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Registered: ‎07-15-2013
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Very specific hypothetical re: bad credit removal

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Hi All,

 

I've seen a lot of conflicting information on the internet regarding exactly when negative credit is removed from a credit report.  I understand that most sources cite 7 years from date of original delinquency as the expected timeframe, but I've even seen some contradiction on this.  I have two primary questions, the 2nd question dealing with a hypothetical:

 

1) Most sources say 7 years from "date of original delinquency," some sites say 7 1/2 years, and some sites say 7 years from date of last delinquency.  Can someone who knows with 100% certainty please clarify?

 

2) Hypothetical: If an account becomes 30-days Past Due in Jan-2010, is brought up to current in Feb-2010, and then is 30-days late again in July-2011,  are all subsequent derogatory marks on the credit report removed after ~7 years from Jan-2010, or does each derogatory mark receive its own 7-year timer?  In other words, could one expect this account to appear to be 100% positive in Jan-2017, or would the account still show the 1 later derogatory mark until Jul-2018?  Even more worrisome, would the account contain all negative information until 7 years after the last delinquency so that the account would show every delinquency until Jul-2018, including the Jan-2010 delinquency?

 

I have seen conflicting information on this matter.  Some insist that "Date of original delinquency"  means all negative data is wiped after 7 years from the very first delinquency, even if the account experiences subsequent delinquencies later.  Others have insisted that each delinquency has 7 years, and still others have insisted that everything is saved until 7 years after the most recent delinquency.

 

Thank you,

 

-John

Moderator
Posts: 22,406
Registered: ‎01-17-2008
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Re: Very specific hypothetical re: bad credit removal

Per the FCRA, which is the authority on the exclusion of TLs from your CR:

 

7 years for late payments, judgments paid or unpaid from the filing date, certain BKs

 

7.5 years from the date of FIRST delinquency for charge offs and collections

 

10 years for certain BKs

 

7 years from date paid for tax liens

 

If I missed something, someone will chime in.

 

It is the date of first delinquency and that date can change only if the account is brought current before it is charged off or goes to collections.  If you were late Jan 2011 that is your DoFD.  If you bring the account current in March 2011 then you are caught up and no charge off or collection.  Now, you become late again in May 2011 and never bring the account current before it is charged off, May 2011 would be your DoFD.

 

Each late is removed 7 years from the date of occurence.

 

With that being said, after 7.5 years only the CO or collection annotation is required to be removed, not the entire TL.  IME, the entire TL was removed and not just the annotation.  If only the CO is removed, the lates would be removed 7 years from each occurence.

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