What Is a Public Record on Your Credit Report?
Demystify public records on your credit report. Gain clarity on what constitutes this data, its presence, and how to accurately review it.
A credit report compiles an individual’s financial history, including credit activity, loan repayment, and account status. Lenders and credit card companies furnish information to credit bureaus, which compile these reports. Lenders use these reports to assess creditworthiness for loan approvals and interest rates. Public records, maintained by legal and municipal authorities, can appear on these reports.
Understanding Public Records on Credit Reports
Public records generally refer to information documented by government entities and made accessible to the public. Historically, civil judgments, tax liens, and bankruptcies were included on credit reports. These entries provided insight into financial obligations from legal actions or unpaid taxes. These records could remain on a credit report for several years, influencing a person’s credit profile.
The landscape for public records on credit reports shifted. As of 2017 and 2018, Equifax, Experian, and TransUnion removed civil judgments and most tax liens from credit reports. This means these specific public records no longer appear. Bankruptcy filings are now the primary public record reported.
Bankruptcy and Your Credit Report
Bankruptcy is a legal process for individuals unable to repay debts, and it remains a public record on credit reports. The two most common types are Chapter 7 and Chapter 13. Chapter 7 bankruptcy, or liquidation bankruptcy, discharges most unsecured debts, meaning filers are not required to repay them.
Chapter 13 bankruptcy, a wage earner’s plan, reorganizes debts into a court-approved repayment plan. Individuals make regular payments over three to five years to repay debts. When reported, a credit report indicates the bankruptcy type, filing date, court, and may show accounts as “discharged in bankruptcy” or “included in bankruptcy.”
How Public Records Are Added and Removed
Credit bureaus gather public record information, such as bankruptcies, from official court sources. While creditors furnish account data directly, courts do not send information directly to credit bureaus. Instead, credit bureaus rely on third-party vendors or internal processes to collect public record data, sometimes manually from courthouses or via online databases.
The duration a bankruptcy remains on a credit report depends on its type. A Chapter 7 bankruptcy stays on a credit report for up to 10 years from the filing date. A Chapter 13 bankruptcy remains on the report for up to seven years from the filing date. Removal is automatic once the reporting period concludes, requiring no action from the individual.
Reviewing and Disputing Public Record Information
Individuals should regularly review their credit reports for accuracy, including public record information. Consumers are entitled to a free copy of their credit report once every 12 months from Equifax, Experian, and TransUnion. These reports are accessible through AnnualCreditReport.com.
If inaccuracies are found in the public record section, such as an incorrectly reported bankruptcy, individuals have the right to dispute it. Disputes can be initiated online, by mail, or by phone through the credit bureau’s website. When disputing, provide detailed information about the error and include supporting documents, such as court orders or bankruptcy schedules, to substantiate the claim.