I'm not looking for advice about how to avoid getting into debt. A close relative coerced me to get credit cards at age 19, so that he could make purchases, and promised to pay it back. Yes, I was young and stupid. No, I could not have possibly paid it back myself. No, I do not plan to take him to court or try to get the money. He does not have it, and I do not want to tear my family apart. Please, I am just looking for the answer regarding the 7 years. Now that I am starting my own family...and I have some sense...I would like to buy a house in a few years. Thank you for your help.
2006-08-26 03:22:46 · 11 answers · asked by Patrice 3 in Business & Finance ➔ Credit
I have the following in my name, all in good standing:
-checking account with a credit/debit card
-car insurance (used car)
-cell phone (they even recently removed my spending limit on the account)
2006-08-26 03:43:12 · update #1
Do me a favor and please ignore all of the previous responses. It's amazing how these people simply refuse to search their answers before responding. And the sad part is I have posted this answer (with my sources) many dozens of times.
You guys are either ignorant, stuborn, or collection agents, as they are very good at lying about this subject.
Donna K, if your story is true, and you would like to find out how to recover a whole lot of money in a lawsuit....email me. I'm not a lawyer or credit counsoler, just someone who likes to make collection agents very nervous.
The truth is that credit agencies can only report your debt for 7 years, beginning on the date of the delinquency. It can NOT be relisted if it's sold to another collection agency. Doing so is called "re-aging" the debt and it's illegal. They could be sued in court for $1000 if you catch them.
You also need to undertand the Statute of Limitations laws. They may still be able to sue you for this debt. See the link below for information on this.
http://www.carreonandassociates.com/articles/sol.htm
2006-08-26 05:18:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Rich Z, gave it to you correctly. It will fall off after 7 years, however 7 years is a very long time and during that time you will have difficulty establishing positive credit. So, from start to positive credit, you could be facing 10 years +.
You may also have trouble establishing a checking account. In some states insurance companies will check credit history for issuing car insurance. Today, preserving your credit status is increasingly critical.
As an afterthought, depending on the amount of the defaulted payment, the bank will probably sue you after months or years of collection efforts. They will seek a judgement against you for the balance which becomes mjuch more serious problem. In that event, this will stay in your report for 10 years after final settlement.They may even be successful in attaching a garnishment on your pay check. So, you are really facing two issues, how this affects your credit rating but you also have legal issues to consider.
You should really focus on the issue of your deadbeat relative. You have a lot more at stake in preserving your personal life than that of your family.
2006-08-26 03:39:41 · answer #2 · answered by willievanillie 2 · 0⤊ 0⤋
Most credit bureaus show everything that's been reported to them in the last 7 years. Thus if you went bankrupt and erased all that debt - the bankruptcy and the debt would all disappear in 7 years. If however the debt is just unpaid, the credit card companies will continue to report it to the bureau as unpaid and thus it will stay on your credit report - until 7 years after they last report it as unpaid - which won't happen until you either make a settlement arrangement with them or go bankrupt.
2006-08-26 03:36:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes they will. But 7 years is a long time to wait to get back to the starting point for credit. After that time you could get a card but it could take years to get your credit score up to a level that will let you get a house mortgage. You might try getting a sub-prime mortgage (high interest but better than nothing) and then try refinancing when you finally have a decent score.
2006-08-26 03:28:57 · answer #4 · answered by Rich Z 7 · 0⤊ 0⤋
Well, it depends on the bureau. Call the issuing bureau and ask them their policies. Some will leave it on and it will accumulate interest. Once it is paid it still stays on the bureau for 7 years.
You should go and see a credit couselor and they will negotiate a lower interest rate because you have to pay off the money unless you intend to go bankrupt.
First step is to contact the issuing bureau about their policies.
2006-08-26 03:30:40 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No, it can remain there forever, simply by the company selling the debt to someone else. They can also do this if you file bankruptcy, under the new bankruptcy laws. So, you could end up with the exact same debt as before.
2006-08-26 04:53:39 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Most likely yes, but if for some reason it doesn't contact the credit bureau. A bankruptcy sometime stays for ten years.
2006-08-26 07:21:46 · answer #7 · answered by moonwalker 3 · 0⤊ 0⤋
It may fall off of your credit report even afetr a few years, but the debt will always stand.
2006-08-26 03:28:28 · answer #8 · answered by F T 5 · 0⤊ 0⤋
I purchased a house three months ago, No they still had a 20 year credit problem that I had, still on their report. Try to keep your nose clean, it will always catch up with you sooner or later. Donna
2006-08-26 04:03:23 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Not sure read some credit tips on this site
2006-08-26 03:25:11 · answer #10 · answered by Anonymous · 0⤊ 0⤋