When it comes to repairing your credit, it is important to note that negative credit information will not stay on your credit report for any more than ten years unless you have a Chapter 7 Bankruptcy, or seven years for most other things.
This is because the Fair Credit Reporting Act mandated credit bureaus remove negative information from credit reports in the span of seven to ten years. However, it is dependent on the type of information that you have.
There are three exceptions to this 7-10 year rule. Come with us as we explore the types of negative items that may end up staying on your report forever.
Permanent Item #1
If you are a consumer that applies for a job that pays more than $75,000 and the employer checks your credit score during the screening process. A credit bureau can leave the information on the report that they give to that employer, even if the information is older than ten years. This includes old collections accounts and old bankruptcies.
Permanent Item #2
When a consumer applies for a $150,000+ life insurance policy, a credit reporting agency is allowed to keep negative information that is greater than ten years old on the credit report.
Permanent Item #3
If you are a consumer that applies for $150,000 or more in credit, a credit bureau is allowed to keep old negative information on the report, information that would typically be taken off of the consumer’s credit report in seven to ten years.
There is something that is quite interesting when it comes to this exception however. Most mortgages are included in this exception. This means that if you decide to apply for a mortgage, you may end up falling into this particular category according to FCRA information regulations.
Will Your Negative Items Stay On Your Credit Report Forever?
At this point, you may be worried that these derogatory items will stay on your credit report forever, potentially haunting you later down the line when you try applying for jobs, mortgages, or life insurance.
In our opinion, you shouldn’t panic. Yes, credit bureaus are technically allowed to keep this information on your report for more than seven to ten years, though that does not necessarily mean they will do it. In our experience, they don’t often do it.
If you’ve been able to get all of the negative information removed from your report, you can start focusing on adding positive information to your report. This is where authorized user tradelines come into play.
Here at Personal Tradelines, we’re all about helping our customers gain a better understanding of how tradelines work, as well as how they can go about making a positive and lasting impact on their credit.
We can’t stress the importance of good credit enough. If you are ready to take your first steps toward your better credit goals, then make sure to get in contact with us here at Personal Tradelines.