Spotting Errors on Credit Reports

It does happen-credit reports sometimes have mistakes on them that can hurt consumers. Therefore, you need to correct inaccurate information on your credit reports as soon as you spot them. Watch out for data errors, fraudulent accounts, and crossed records. Check the expiration dates of the records, and if you find something wrong send a dispute letter to the credit bureaus. Pay attention to the following:

Bankruptcy filing records: They expire 10 years after the filing date. However, Chapter 13 bankruptcy filings are removed from your report after 7 years. "Included in BK" accounts stay on your report for 7 years from the filing.

Charge-off records: They appear on your credit report for 7 years from when a lender or creditor passes off your delinquent debt as a loss.

Collection records: They stay on your report for 7 years after the last late payment that caused the account to be sold to collections.

Closed accounts: Closed negative accounts remain on your credit report for 7 years; closed positive accounts may remain longer.

Foreclosure records: These will stay on your report for 7 years.

Inquiries: Tracks of credit and loan applications will stay for 1 to 2 years.

Judgments: Court decisions, like child support and small claims judgments, will stay on a credit report for 7 years.

Late payments: These records stay for 7 years, but the only late payments that have a negative effect are those that go beyond 30 days.

Repossession records: Property and vehicle repossession records stay on your report for 7 years.

Tax liens: These records may stay your credit report indefinitely if they are left unpaid. Once paid, they remain for 7 years from the paid date. This applies to city, county, state, and federal tax liens.