How Long Does Delinquent Credit Stay on Record?

Delinquent credit refers to financial obligations that have not been paid by their due dates, appearing on a credit report to reflect missed payments or failures to meet financial commitments. Credit reports serve as a detailed record of your borrowing and repayment activities, influencing future access to credit, loans, and even housing.

Defining Delinquent Credit

Delinquent credit describes an account where a borrower has failed to make payments as agreed upon. When a payment is missed, the account transitions into a delinquent status, which can be reported to credit bureaus. The severity of delinquency often increases with the length of time a payment remains overdue, ranging from 30 to over 90 days past due.

Late payments occur when a payment is made after its due date, typically reported once it is 30 days or more overdue. If payments continue to be missed, an account may become a “charge-off,” meaning the creditor has deemed the debt uncollectible and written it off as a loss, usually after 120 to 180 days of non-payment.

Collection accounts arise when a charged-off debt is sold or assigned to a third-party collection agency. This agency then attempts to recover the outstanding balance from the borrower.

Bankruptcies, such as Chapter 7 or Chapter 13, are legal proceedings that can discharge or restructure debts. Foreclosures occur when a lender repossesses property, typically real estate, due to a borrower’s failure to make mortgage payments. Civil judgments and tax liens are legal claims against a borrower’s assets resulting from court orders or unpaid taxes.

Reporting Timelines for Various Delinquencies

Most negative credit information, including delinquent accounts, generally remains on a credit report for about seven years. This reporting period is governed by the Fair Credit Reporting Act (FCRA).

The “original delinquency date” (ODD) determines how long an item stays on a report. The original delinquency date is the date of the first missed payment that led to the account becoming delinquent and remaining so, even if the account is later charged off or sent to collections. The seven-year clock for most negative items starts from this point, not from a later event like a charge-off or the debt being placed with a collection agency.

Late payments typically remain on a credit report for seven years from the date of the missed payment. For example, a payment reported 30, 60, or 90 days late in June 2022 would generally fall off the report in June 2029. Even if the past-due balance is eventually paid, the record of the late payment typically stays on the report for the full seven-year period.

Charge-offs and collection accounts generally remain on a credit report for seven years from the original delinquency date of the account that was charged off or went to collection. Even if a collection account is paid, it usually remains on the report, though its impact on credit scores may lessen over time.

Bankruptcies have different reporting timelines depending on the type filed. A Chapter 7 bankruptcy can stay on a credit report for up to 10 years from the filing date. Conversely, a Chapter 13 bankruptcy remains on a credit report for up to seven years from the filing date.

Foreclosures typically stay on a credit report for seven years. This period usually begins from the date of the first missed payment that led to the foreclosure action.

Civil judgments and tax liens are no longer included on credit reports by the major nationwide credit bureaus. However, these items can still exist as public records, accessible through other means.

Ensuring Accuracy of Credit Report Information

Regularly reviewing your credit reports ensures the accuracy of your financial information. This vigilance helps identify any discrepancies, including those related to delinquent accounts or their reporting timelines. Errors can inadvertently affect your credit standing and access to future financial products.

You are entitled to a free copy of your credit report once every 12 months from each of the three major nationwide consumer credit reporting companies: Equifax, Experian, and TransUnion. These reports can be accessed through AnnualCreditReport.com, which is the only federally authorized website for obtaining these free reports. You can choose to request all three reports at once or space them out throughout the year.

If you identify information on your credit report that you believe is inaccurate or outdated, you have the right to dispute it under the Fair Credit Reporting Act (FCRA). To initiate a dispute, you should contact the credit bureau directly, providing your full name, address, date of birth, and clearly identifying the specific item you are disputing. Including supporting documents that prove the inaccuracy is also beneficial.

Upon receiving your dispute, the credit bureau is required to investigate the item within 30 days. The bureau must then notify you of the results of their investigation, and if the information is found to be inaccurate or cannot be verified, it must be removed or corrected. This dispute process is specifically for correcting errors and does not provide a mechanism for removing accurate negative information before its designated reporting period expires.