Positive information stays on your credit report indefinitely.
Most negative information can remain on your credit report for up to seven years. This includes late payments, accounts that the credit grantor turned over to a collection agency, and judgments filed against you in court—even if you later paid the account in full. Bankruptcy information can be reported for up to ten years. Information reported because of an application for a job with a salary of more than $75,000 has no time limit. Information reported because of an application for more than $150,000 worth of credit line or life insurance has no time limitation. Default information concerning a U.S. Government-insured or -guaranteed loan can be reported for seven years after certain guarantor actions. Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
You can write a 100-word (or less) statement to be put in your credit report explaining the reasons for the negative information; be specific and write a clear explanation which could include circumstances such as unemployment or long-term illness. This statement may not be helpful, though, if the lender views the statement as an excuse. Another drawback is that the statement can remain after the delinquency has been deleted, which unnecessarily raises questions from lenders. More important are “dispute statements” that allow you to present your position when you disagree with what a lender has reported.
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