is it true that bad credit goes away in 7 years?

Question

I want to know if this is true and also if that does apply to school loans.
thank you.

Answer 1

OMG! So many terrible answers!

Derogatory accounts must be removed from your credit report after 7 yrs. The 7 yrs. starts when a debt becomes delinquent, never brought current, which leads to charge-off or collection activity.
The 7 yr. reporting period cannot be restarted by making a payment or by reselling the debt to another collection agency.
Bankruptcy's obsolescence period can vary from 7 to 10 yrs. depending on which chapter you file.
Now, just because it's not on your reports, that doesn't mean you still don't owe it. It's just can't be reported anymore. Each state has its own statute of limitations on how long a creditor can seek legal remedy for unpaid debts.
Creditors can still pursue any unpaid debts regardless if the statute of limitations has run, they just can't sue you for it. But that doesn't mean that can't try. However, if they do, you'll have a solid defense.

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

well, not exactly. Negative information can stay on your credit report for 7 years. That is not 7 years since you charged something, but 7 years since the last activity on the account. But that does not mean that if you have a blemish on your credit report that in 7 years your credit is perfect. Many things can negatively impact your credit rating. Just filling out an application at your favorite department store because they offer you an umbrella or T-shirt or water bottle can negatively impact your credit rating.
Some items, such as child support, taxes, and student loans do not have a 7 or 10 year statute of limitations.
Also, I believe, that even things that have a 7 year limitation are not necessarily gone after 7 years. Say you have an outstanding credit card bill and have not made a payment. If that credit card company decides to investigate the debt after 6 1/2 years, it stays on your report for another 7 years.
ETA:
If you are currently worried about student loans, do not just ignore them. It will not go away, and you will default which is worse. Contact your student loan people and request a deferment or a forbearance. If you do not qualify for either of them you can usually consolidate the loan and then reapply for the deferment or forbearance. This is not hard, and it is much gentler on your credit than a defaulted student loan.

Good luck to you.

Answer 4

this is a yes and no answer. as i have been through this myself. it is true that if you have a loan and after you have had no contact with that creditor after 7 years they cannot continue to try to collect. but there are alot of no answers. if you havent made any payments for a few years and you decide to make one or they call you and you admit that it is you they are talking to it starts the 7 years all over. they record those phone calls. and what they typically do is turn youre loan over to another collection agency just before the 7 years is up. so that gives them 7 more years. filing bankruptcy now is way more difficult than it was years ago. i have been avoiding creditors for many years now with them not finding me. the best way is to file applications for credit through them again. never do it from youre computer. get a form. use youre real name and social security number. but use a fake address and telephone number. something from a state you have never lived but know a friend who lives in that state. fill out the form and put it in an envelope. put it in another envelope and mail it to a friend in another state, have them mail it from there. the creditors will think you moved and not contact you at youre current location. dont use youre friends real address or phone # just use anything from the phone book. and never ever admit that it is you if a creditor calls you. that gives them 7 more years. keep them confused and they will give up.

Answer 5

I was beginning to wonder if you were going to get a correct answer out of all of these posts - Celeste pulled through with flying colors. Her answer is right on the nose along with the sources to back it up.

To add, negative student loans will fall off your credit reports at the 7 year mark.
If they are government backed they will be legally collectible until paid.

Answer 6

It's kind of like your driving record, bad things roll off after seven years. So, it takes seven years for you to repair bad credit but it doesn't just go away. You have to work at it by making payments on time and not opening too many accounts. So, even though it's hard to do, you can fix your credit but bad credit doesn't just "go away" after seven years. You can also call credit agencies and they will sometimes take bad things off your credit report early but not always. Student loans are just like any other loan. After you finish school and start paying them they will negatively effect your credit if not paid. Also, do whatever you have to in order to avoid filing for bankruptcy. That's the WORST thing you can do for your credit.

Answer 7

bad credit doesnt "go away" in 7 years. things that are unpaid will drop off after 7 years, but if you continue non-payments and such, it will just stay bad. if you completely clean it up, and pay everything on time, all the old stuff will come off after 7 years. you can also actually request that a company remove things that you have paid off, but im not sure how successful you will be. good luck! as far as i know, school loans will haunt you for the rest of your life.

Answer 8

Some does some doesn't it depends on the creditor, some will cut their losses and some will roll it over and continue to put it on your credit again when the 7 years are almost up they will re-write it again to keep it on your report. Not only can they garnish your wages but they can also now-a-days take money from your income tax return. I am sorry to say because we all have times that are hard to get by and make ends meet. The V.A. did that to my husband last year on his co-pays when he became ill and had to be in and out of the hospital alot. With 3 children we were having a hard times making ends meet, they took it from our income tax return.Good luck, best wishes.

Answer 9

Uh, "if you claim bankruptcy"?? Okay. If you claim bankruptcy not all of the debt has to go away...unless you claim chapter 7 which wipes out everything, but then everytime you apply for something and it asks, "have you ever filed bankruptcy"...you're in trouble. Believe it or not, it's not a good thing to do.

Some bad credit can go away in 7 years. Depends on what it is.

Answer 10

Not at all. Bad credit is fixed by being finance wise. Nothing bad ever comes off your credit report, creditors who look at your credit report decide if something is too old to worry about. If you have bad credit get your score up. I have declared bankruptcy in September and bought a new car in October because my score was good. If you had bad credit and fix it a creditor will see that in your score. Any other answer is bunk.

Luck!

P.S.-If you have bad credit you can look around for free assistance getting your score back up. Do not pay a service (add a bill to bad credit is DUMB). Learn what a credit report is, what a credit score is, how to use them, and how creditors use them. Almost all the answers above are based on myth.