How long does an item stay on a credit report for?

A simple question and almost nobody gets it right. How long does an item stay on a credit report for? The safe answer is “it depends,” but I obviously cannot give you points for that. Most will answer “7 years” and that is just completely wrong. To start with; the typical derogatory account like a charge off, profit & loss, or collection will stay on your report for 7 years FROM the Date of Last Activity or DLA on your credit report. This is a BIG difference than just 7 years because if every 6 years you paid a dollar towards your account you would long die of old age before it ever came off. Additionally, if the account sells to another creditor you also get another 7-year sentence, so the answer “7 years” is just not correct. Even late payments and child support stay on for 7 years until the last scheduled payment, so if you miss a payment on month 1 of a 30-year mortgage and do not make it up, you could face 37 years of it reporting late! Judgements are 7 years from the satisfaction timeframe or the starting timeframe, whichever is first. Chapter 7 BK itself is 10 years but the accounts included are 7 years, from the discharge date. Chapter 13 BK is seven years after satisfaction or 10 years from the start whichever is first. Federal and state tax liens have no statute of limitations what so ever until they are satisfied, then its 7 years. Hard inquiries last two years although that’s irrelevant as the damage only lasts one.
By the way, this is what is meant to happen, doesn’t mean everyone is playing by the rules.

Happy Thanksgiving

Sam Cotton – NMLS #263585
Sr. Loan Officer\Since 1996
1131 Monterey St.
San Luis Obispo, Ca 93401
NMLS 218908
805 550-5000-cell
805 782-6999-office
805 782-6998-Fax
“You Are Not Alone When You Need A Loan”

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