Bad credit question - USA?

Question

I may return to the USA after 11 years but I had some payment to shop cards
(JC Penney) and one telephone charge that I did not pay. The amount I owed
cards JC penney + telephone is around $1700. I also had a bounced check. I left US in 1996.

I had other cards that I paid and closed all other accounts.

I checked couple of days back my credit report through Experian and I did not have any negative points. Instead, the records that I closed some of my
credit cards without being late is however mentioned as good standing. But
there was no mention of my closed bank account.

Would this mean that the previous money that I owed is dropped ?

My question is:

1. If I come back to the US, any problems in opening a bank
account ?

2. Obtaining credit cards - will there be any issue ?

3. Is Experian a reputed agency ?

5. If I lived in a particular state during my stay in US, would Experian
not capture the entire history ?

Please let me know.
Thanks
Suk

Answer 1

The bad check would be my biggest worry, it is possible that a warrant for your arrest was issued, depending on local/state laws. Which could still be outstanding, I would definitely check, I'd hate to get pulled over for a minor traffic violation or check check upon reentry by customs and find out I had an outstanding warrant for my arrest, even though the charges are minor and would probably only involve paying a fine and/or monies owed, it would be a BIG hassle. I'd check on it and clear it up BEFORE my return, if I were you.

Experian is one of the BIG 3 credit reporting agencies along with Trans-Union and Equifaq. You should check all 3 to get an accurate picture of your credit in the US. Also credit scores are available from all 3 (which will vary up to 40 points from place to place) and the average score is 675. Anything 675 and up you should have no problem with getting a credit card, bank account, etc.

Oh one more place to check is Chex Systems, they are kind of like a credit reporting agency except the keep records of people who have accounts closed at banks due to overdrafts and similar situations. Many Large and Local banks will not open an account for you if you have been reported to chex systems, although a quick internet search of "Bank account NO chex systems" will return several internet banks that will open account (usually with less favorable terms and higher fee's) even if you have been reported to chex.

In my opinion most of these problems would have disappeared after 11 years, long ago written off, execpt for the bad check.

Good luck.

Answer 2

As far as your credit history is concerned, the credit reporting agencies are not allowed to report negative items after 7 years, beginning from the date of the delinquency.

Therefore, from the standpoint of getting more credit, opening a bank account, or any other activities, you don't have to worry about your credit report getting in the way.

But your problem is the Statute of Limitations.

The SOL is the legal timeframe that a creditor has to sue you. It varies from state to state. In most states that time is from 4-6 years (See the link below).

Your problem is when you leave the state, the SOL time "tolls". That means the clock stops until you return to the state where the debt occurred. Therefore, if you left Michigan (for example) to live in Canada for 11 years, and then return to Michigan, they will restart the clock from the time you left. The creditor could actually be allowed to sue you.

If you moved to a different state then the creditor must use either the current state or your new state's SOL (whichever is greater). So if you move from Michigan (6 years) to California (2 years) then they can use Michigan's SOL and use the 6 year period. But once you return back to Michigan, the original SOL will pick back up from the time you left the state.

Yeah, it's confusing. I've posted a couple of links for you to read up on.

If you are returning to the original state, the key is to stay "below the radar" so your past creditors don't know you are back. Once the remaining SOL expires you are safe, as you no longer have a legal obligation to repay the debt.

Answer 3

1) No, there should be know problem of opening a bank account
2) As long as your credit is in "good" standing, you should have know issues getting a credit card. Though you will need an income.
3) Yes!!!
4) Experian covers ALL states.

Answer 4

After 7 years all negative items are removed from your credit report except for Bankruptcy, or chapter 13. Good luck on your return!

Answer 5

Since you have not lived here for over 10 years then the chances of any thing coming back to haunt you is slim. Most of these items will only report for 10 years.

Answer 6

I am sure all your credit history is clean after 11 years..
It is usually clean after 7 years...

Answer 7

i don't think you will have a problem.
those debts were long since written off.
however, if you are asked, you should disclose
the truth. because anyone who goes digging will find it.

Answer 8

money talks