How Long Do Adverse Accounts Stay on a Credit Report?
- Adverse accounts are categorized as either derogatory accounts, such as unpaid debts, or public records, such as bankruptcies.
- Charge offs, collection accounts, foreclosures and judgments can appear within your credit file for 7 ½ years. Bankruptcies, however, can appear on a credit report for up to 10 years.
- The Fair Credit Reporting Act gives you the right to contest any adverse information that you believe is appearing on your credit report in error and request its immediate removal.
- An adverse account may not appear on all three of your credit reports. Which credit reports reflect the account depends upon the creditor's membership in each credit bureau's reporting program.
- As long as an adverse account appears on your credit report, you will be considered a higher lending risk. This may result in you paying higher interest rates on credit cards and loans.
