How long will it take for negative items to fall off of my credit report? Does it really take 7 or 10 years…..or is that just a myth to keep us paying our bills on time?

And if I pay something late, or have a credit card closed for payment related issues, does that mean I am really going to have to wait 7 years to get NEW credit once again?

In this article we are going to take a quick and easy look at the duration of time you should expect for negative information to STAY on your credit file, and tackle a few of the common misconceptions that many folks have as well. Curious to know more? Let’s take a closer look, immediately below!

The GOOD News First

While many of the credit bureaus want you to believe that it takes 7 years or longer to improve your credit once you’ve had someething charged off, the truth is, the TRUE effect on your FICO score only really lasts 2 or 3 years. And while if you don’t get that item removed it does stay around for 7 years or so (usually a little bit less) the fact is, RECENCY is a much more important factor than a late payment long ago, especially when figuring out your score. More details please

In other words? If your recent payment history has been GOOD, and the negative items are a good deal in the past, (2 years or more) the weighted effect, both in your actual score AND in the perception of your ability to pay is greatly diminished. (and shouldn’t be too much of a problem in getting new credit as well)

The BETTER news?

The longer something has been on your report, the easier it is to remove as well. A charge off from 5 years ago has a much better chance of being challenged and deleted today, than something you only recently paid late. (especially if it’s current, or a very recent late payment on an open account)

And – contrary to what you may hear otherwise, there IS no law that requires something to stay on your report for 7 years anyway. It requires it to come OFF after 7 years, but there is no legal mandate for a creditor to report something negative for any length of time at all.

(this protects YOU from really old info hurting for longer than it should, and gives you powerful legal rights to negotiate with your creditors as well, as they are in the business of PROFIT and not punishment)

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