What does it mean when your debt drop off your credit report?
I was watching the Today Show & their financial specialist was talking about credit card debt dropping off your credit report after so many years but I missed most of her comments .
Anyone hear of this ? Is it a fact ?
Does anyone know of a website I can check with? I can’t find it on the Today Show website.
Whenever a debt exceeds the statute of limitations, typically 7 years it will fall off your credit report. This is supposed to happen automatically at the credit bureau but it’s not unheard of to have to give them a friendly reminder to take it off.
The 7-year credit itch is the penalty an account holder must pay for having a defaulted account.
Just google it or check the credit bureau “education” or “learning” portion of their websites
http://www.equifax.com
http://www.transunion.com
Seven years after something negative is put onto your credit report (i.e. a late payment, a debt sent to a collections agency, etc) it is removed. Of course, this does not mean you have a perfect credit score every 7 years, because it’s 7 years after each individual negative item.
For example:
Let’s say Jeff made a late payment on his credit card in July, 2000.
He then let a loan go to collections in July, 2005.
As of July 2007, he would no longer see the late payment on his credit report, but the collections item would still have 5 years left.
The 7 year limit is the credit agencies way of giving a second chance. Who doesn’t get into a little credit card trouble when they’re young? This way, poor habits that have since changed do not continue to follow you through the rest of your life.
go to https://www.annualcreditreport.com/cra/index.jsp to request a copy of your credit report. If you order online, there will be a fee, but if you call them there will be no charge. Credit reporting agencies generally will not remove items after the limitations has matured. But, you can have these items removed by sending them a letter.