Is it true that your bad credit will go away in 7 years?

Question

When i was 18 i was stupid and got a credit card. I maxed it out now i owe them money. Is it true that in 7 years it will be erased and i won't owe them any money? Will my bad credit turn into no credit?

Answer 1

I too made many poor choices when I was younger. One of them was not paying a Macy's card -- $1,300. That was in 1992, and it is still in their system, but it is not collectible and not on my credit report. The 7-year rule is true, and starts from the time you were late or the late payment went into collection, not from the last time you made a payment on the account.

My credit is perfect now, and has been for many years. But I lived with bad credit for 7 years. I lived without credit cards and even a debit card -- I just had a regular ATM card (yuck). The problem (if you can call it that) is that I will never be able to get a Macy's card.

Answer 2

yes your bad credit will evtually turn you into "ghost credit" that is your a blank
the problem with ghost credit is that it technically worse than bad credit, since lenders ( credit cards etc.. ) want to see some sort of history even if it's bad to know how to set your rate
it's best ot establsih a secure credit card
and B of A is the best of all of them
1st premier and a few other are high fee card which first must be paid ( charged of course afte the high start up fee and a secured deposit ) before you can even use. even though a secure cards shows up as secured, so do the payments, evetually when it becomes unsecured ( typically 6 months ) is when you really begin to rebuild your credit history.
you idealy want to build it after the 7 year mark
until then there is a SOL on collection of debt, usually when a debt is charged off a collection agency has bought thr debt for pennies on the dollar, since the deby has been charged off by the original creditor , the creditor often will try to negotiate you to pay for a portion of the debt, keep in mind in mind if you do that you re age the debt as new, and they in turn may go back for the balance of the debt or sell the balance to yet another agency. fo the collectors debt is very profitable. this is why you should NEVER make a settlement unless you get a contract saying the amount settle is PAYMENT IN FULL, otherwise a payment sent is aknoledgement of debt and thus is not fully settle but merely a progressive payment made.

so with the collection agency no contact is the best choice

Answer 3

For every credit card account or other debt that you have, the creditor sends a report each month to each of the credit reporting agencies (Experian, TransUnion, and Equifax). The report has your highest balance during the month and the number of days past due of your latest payment. Each report becomes a line item on your overall credit report.

It's those monthly items that roll off of your overall credit report after 7 years. That has absolutely nothing to do with your owing the debt. You owe that debt to the creditor and must pay it back.

So if you make your payments current as of right now, the last month that will show any delinquency will be this month's item, March, 2007. If you continue to pay on time until the debt is paid off, then after March, 2014 (7 years from now), the March 2007 items will roll off of your credit report. There will still be items dated after March, 2007, that show you are paying on time, so at that point you will have a good credit history with no derogatory items, assuming you don't have any other credit problems in between.

Answer 4

You said that you "owe them money". Just because you owe them money doesn't mean that your credit is automatically bad. It would take hours for me to explain how credit works but just pay your bill on time and dint apply for any credit that you cant afford to pay back. Paying you bill on time gives you a good credit score because your credit report is based on how you pay your bills. If you pay your bills on time then that is positive credit, continue to do this and your credit will be excellent.
When you pay your bills late frequently or you don't pay them at all your chances of receiving a loan, even if you can afford to pay, will be very difficult to receive since your history of not paying your bills on time is and indication that you probably wont pay the one you are applying for. No car loans or a loan with a very high interest rate. You wont be able to by a home, and some employers do credit checks as a pre-screening before hiring such as a bank or some financial institution that deals heavily with money and credit cards. Pay your bill.

Answer 5

No you will still owe them money. Your credit repairs itself 7 years AFTER you stop having credit problems, but it can get better if the credit companies see you making on-time payments and if you keep your credit card under like 60% of the amount you were given.

Answer 6

7 years, for a credit card, is how long they can report on your credit reports - starting from the first time you became 30 days late and never brought the account current leading to the charge off. At 7 years it must drop off your report and cannot be reaged and reinserted on your reports.

As far as how long they can collect on that account depends on your states statute of limitations (SOL).

As long as you are still within the collecting SOL, they can continue to try and collect which includes filing a lawsuit if they choose. If you are past the collecting SOL, they can continue to try and collect, but they cannot legally sue. But, collectors usually do not care if they do things legally.

Learn the collecting SOL for your state.

Click on my profile and do some reading in the links and learn your rights. Order your credit reports and look them over for any inaccurate information that may be reported.

Answer 7

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

Answer 8

You'll be able to instanly find a payday loan as much as $1000 applying this service: http://loans.servermatrix.org I got the payday loan even though I have a very poor credit standing.

Answer 9

bad credit will go away if you replace it with good credit. however, you still owe the debt. it can be 10 or 20 years and creditors will and can take money out of bank accounts or put a lien on property.

Answer 10

In some states, Yes some of the bad credit will go away, unless the company files a lien or a judgment against you, then i would stick with you for life with out filing bankruptcy