What happens when a negetive remark (ie: Charge off) falls off the credit report after 7 years ...does it lowe

Question

What happens when a negetive remark (ie: Charge off) falls off the credit report after 7 years ...does it lower the credit score or swigs it higher .If the debt is never paid?

Answer 1

I think some of the previous posters are getting the reporting statute of limitations (SOL) and your states SOL confused.

When the charge off drops off of your report at the end of the 7 year reporting period, it will make your score fluctuate. First it may go down since you are losing history, but it should rebound.
Maybe within 6 months to a year.

As far as if the collection agency can continue to "legally" try and collect depends on your states SOL. You should try to find out what your states SOL is.

If you are out of SOL, when the charge off is close to dropping off, (about 6 months or less) send a dispute to the credit bureaus claiming that account is obsolete and to please delete it.

Do not dispute the account if you are still in SOL.

Answer 2

If any of your accounts were charged off more than seven years ago, (from the date of last activity) the damaging information on that account should have been erased from your credit bureau file, and a collection agency cannot reenter the information. This process take place under a federal law, called the Fair Credit Reporting Act (FCRA), that regulates the actions of all creditors and credit reporting agencies.

If credit agencies are required to remove such reports after 7yrs, then I would guess it coul raise your credit score.

Answer 3

After 7 years, the negative remark disappears like it never existed. Be careful, though. In some states it's 10 years. Also, the company you owe the money to may sell off your debt (pennies on the dollar) just before the 7 years and you could get contacted by another agency. IF YOU ACKNOWLEDGE THE DEBT, you may get stuck with another negative remare for ANOTHER 7 years!

Answer 4

When it comess off your report, your score will go higher if you do not have any current problems on your report.

What Matt G didnt clearly specify is that if a "Scavenger Collector" attempts to contact you regarding the old debt all you need to say to them is "I do not owe this debt. It has passed the statute of limitations. Do not contact me again."

It is against the law for you to owe them anything past the 7 years BUT if you promise to pay or send them a check, it will be RE-Instated on your credit report as a collection and you will either have to pay it or you will have to wait another 7 years for it to fall off again. Be careful if they call or write you. just respond to them in the manner i stated above and you will be fine.
Best of luck!

Answer 5

credit score reflexs the current status of the acct