How Long Does Debt Stay On Your Credit Report

Receiving negative information on your credit report is often difficult to come to terms with. One of the first questions that people have, and rightfully so, is: how long does debt stay on your credit report? While there is no simple answer to this very complicated question, there are a number of things you should know if you have just received bad news after opening your latest credit report. How long does a debt stay on your credit report? The answer to this question depends primarily where you obtained your debts. The simplest answer to this question, however, would be anywhere between six to eight years. In most cases, there is a seven year rule that applies to any negative information on your credit report. The following paragraph helps answer the question: how long does debt stay on your credit report?

In the case of late payments, bankruptcy and foreclosures, negative information is likely to remain on your credit report for a period of seven years. Collections are generally somewhat more flexible, and while they are also generally maintained for a period of seven years, this may vary depending on how old the debt that is being collected is. In the case of public records, negative information is also normally kept on credit reports for seven years, but this information can be kept indefinitely so long as you have unpaid tax liens. It is frustrating for many debtors that despite paying their bills, albeit a little late, their credit reports are scarred with nasty reminders that might haunt them for the rest of their lives. However, if you have paid your bills, the clock will stop ticking, and before you know it, your credit reports will be as good as new again.

Many people believe the statute of limitations plays some kind of role in determining the answer to the question: how long does debt stay on your credit report? However, contrary to common perceptions, there is absolutely no correlation between the statute of limitations and the duration of time for which negative information remains on your credit report. It is also essential to keep in mind that debt is recorded on your credit report from the time when you are late, not from the time of the last payment that you made. Despite what many people believe, paying a collection does not actually extend the period of time for which the negative information will remain on your report.

It is essential to know the answer to the question: how long does debt stay on your credit report? Many credit agencies attempt to take advantage of individuals who are not familiar with the relevant laws. Since your credit reports, in most circumstances, determine the level of access you will have to low-interest loans for high value investments such as cars and homes, it is imperative that you take the time out to learn the policies that help you figure out how long does debt stay on your credit report.