How long negative information can stay on your credit report

Negative information doesn’t stay on your credit report forever. The Fair Credit Reporting Act sets time limits for most of it, though there are a few important exceptions. Here’s how the limits generally work.

The general rule: seven years

The CFPB says credit reporting companies generally can report most negative information for seven years. The FTC gives the same general limit. That covers things like late payments that were reported accurately.

The law behind this is 15 U.S.C. 1681c. It lists types of information a bureau can’t include in a report once they’re older than a set period. For most of them, the period is seven years.

Time limits by type of information

Here’s what 15 U.S.C. 1681c says about specific items:

• Bankruptcies: can’t be reported once they’re more than 10 years old, measured from the date of the order for relief or adjudication. The CFPB puts it as up to ten years.
• Civil suits and civil judgments: seven years from the date of entry, or until the governing statute of limitations has expired, whichever is longer.
• Records of arrest: the same rule, seven years from the date of entry or until the statute of limitations has expired, whichever is longer.
• Paid tax liens: seven years from the date of payment.
• Accounts placed for collection or charged off: seven years.
• Other negative information: seven years.

When the clock starts for collections and charge-offs

For delinquent accounts that go to collection or are charged off, the law sets a specific starting point. The seven-year period begins when a 180-day period ends, and that 180-day period starts on the date the delinquency began. In other words, the clock is tied to when the delinquency began.

The exceptions

Criminal convictions

The seven-year limit for other negative information doesn’t cover records of convictions of crimes. The law carves those out.

Large credit, insurance and job applications

Under 15 U.S.C. 1681c, the time limits above don’t apply to reports used in connection with:

• A credit transaction with a principal amount of $150,000 or more
• Underwriting life insurance with a face amount of $150,000 or more
• Employment at an annual salary of $75,000 or more

The CFPB describes these exceptions the same way in plain terms: a job paying more than $75,000 a year, or an application for more than $150,000 in credit or life insurance.

Information may stay on file

The CFPB notes that companies usually stop reporting negative information after these limits, but they may still keep it in their files.

Other things the law requires on reports

The same section of the law includes a few related rules:

• A report must identify which chapter of the bankruptcy code a case was filed under, if the source provides it.
• A bankruptcy case withdrawn before a final judgment must be reported as withdrawn once the bureau gets documentation of that.
• If a bureau is told you voluntarily closed an account, it must note that in reports that include the account.
• If a bureau is told you dispute information, it must indicate that in each report that includes it.

Positive information can stay longer

The time limits apply to negative information. The CFPB says on-time payment history can stay on your report as long as you keep paying on time, and it may still be reported after a loan is paid off or an account is closed.

What you can and can’t change

The CFPB says you generally can’t have negative information taken off your report if it’s accurate. But you can dispute:

• Information that’s inaccurate
• Accurate information that shows up more than once
• Negative information that came from identity theft or isn’t about you

The CFPB recommends disputing inaccurate information with both the credit reporting companies and the companies that furnish information to them. See disputing an error with the credit bureaus and your credit rights for more.

You can submit a complaint to the CFPB at consumerfinance.gov/complaint or by calling (855) 411-2372.

The short version

• Most negative information can generally be reported for seven years.
• Bankruptcies can be reported for up to 10 years, and lawsuits and judgments for seven years or until the statute of limitations runs out, whichever is longer.
• For collections and charge-offs, the clock is tied to when the delinquency began.
• The limits don’t apply to criminal convictions, or to large credit, life insurance and job applications.
• Accurate negative information generally can’t be taken off your report, but errors can be disputed for free.

Sources

• 15 U.S.C. 1681c: Requirements relating to information contained in consumer reports
• CFPB: How long does information stay on my credit report?
• CFPB: Is it possible to remove accurate but negative information from my credit report?
• FTC: Disputing Errors on Your Credit Reports

General information, not legal or financial advice. Laws and government guidance change, so check the sources above for the latest.