What Is a Public Record on a Credit Report?

A credit report provides a comprehensive summary of an individual’s financial history, detailing how they have managed credit and debt. This vital document serves as a financial snapshot for lenders, employers, and other entities assessing financial responsibility. Within a credit report, “public records” refer to information made available from government sources, typically related to financial or legal events. This article clarifies what public records are on credit reports, which ones may appear, and how consumers can manage this information.

Understanding Public Records on Credit Reports

Public records on credit reports are official financial or legal events filed in courts or with government agencies. These records differ from other entries on a credit report, such as payment histories or inquiries. While payment histories reflect direct interactions with lenders, public records indicate more significant financial or legal actions.

Credit bureaus collect and display this public information to provide a complete picture of a consumer’s financial standing. Historically, various public records were included on credit reports. However, changes have occurred regarding which specific types are now reported.

Types of Public Records Included

Significant changes have narrowed the types of public records that appear on a credit report. Bankruptcies remain a public record that credit bureaus include. These legal proceedings, such as Chapter 7 (asset liquidation) or Chapter 13 (repayment plan), signal a severe financial event. Foreclosures, when a lender repossesses a property due to unpaid mortgage payments, are also generally reported.

Civil judgments, court orders from lawsuits for unpaid debts, were once a common public record on credit reports. However, major credit bureaus (Experian, Equifax, and TransUnion) stopped including most civil judgments on credit reports in 2017 and 2018. This decision stemmed from data quality issues, as many civil judgments lacked sufficient identifying information (e.g., Social Security numbers), leading to potential inaccuracies in reporting. Similarly, tax liens, claims against property due to unpaid taxes, are generally no longer included on credit reports by these major bureaus as of April 2018 for comparable data quality reasons. These exclusions mean that while bankruptcies and foreclosures are still reported, civil judgments and tax liens are not, though they remain public records accessible through other means.

How Public Records Appear on Credit Reports

Public record information appears on a credit report through a data collection process by credit bureaus. Credit reporting agencies (Experian, Equifax, and TransUnion) gather this data from various public sources. These sources include court records (e.g., federal bankruptcy courts) and other government agencies responsible for maintaining financial and legal filings.

The process involves credit bureaus or their third-party vendors accessing public databases or reviewing court documents. This collected information, including details like the type of record, filing date, and associated parties, is integrated into consumer credit files. While courts do not typically furnish information directly to credit bureaus like creditors do, the bureaus seek out and compile this publicly available data for inclusion in credit reports.

Timeframes for Public Record Inclusion

The Fair Credit Reporting Act (FCRA) dictates how long public records can remain on a credit report. For bankruptcies, the inclusion period varies by filing type. A Chapter 7 bankruptcy (asset liquidation) can stay on a credit report for up to 10 years from the filing date. A Chapter 13 bankruptcy (repayment plan) typically remains on a credit report for seven years from the filing date.

Foreclosures generally stay on a credit report for seven years from the date of the first missed payment that led to the foreclosure. While civil judgments and tax liens are generally no longer reported by the major credit bureaus, their historical reporting timeframe was typically seven years. This period would usually run from the filing date for judgments or the release date for liens. These timeframes represent the maximum duration these events can negatively impact a credit report, with removal usually occurring automatically once the period expires.

Reviewing and Correcting Public Record Information

Reviewing your credit report is a fundamental step in understanding your financial standing and identifying any public records. Consumers are entitled to a free annual credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) through AnnualCreditReport.com. It is advisable to review these reports regularly, paying close attention to the public records section. When examining this section, verify the accuracy of all details, including dates, amounts, and names, and confirm that no outdated or incorrect public records are listed.

Should you discover any inaccuracies in the public records section of your credit report, you have the right to dispute them directly with the credit bureaus. The dispute process can be initiated online, by mail, or over the phone. When filing a dispute, clearly state the error and provide supporting documentation, such as court documents proving a judgment was vacated or proof of a tax lien release. Credit bureaus are obligated to investigate disputes within 30 to 45 days. While the primary dispute is with the credit bureau, if the error originates from the public record source (e.g., a court), you may also need to contact that entity to correct their records.