Monday, November 16th, 2009
Reader’s Question
I have two negative accounts on my credit report that have been sitting there for a few years. Other than those, my credit report has only accounts that are on time. I have recently started to try and really jump my credit score up and was wondering if these were even worth putting my time and money into fixing, or will these slide off of my account eventually? I have always wondered when exactly the 7 year rule goes into effect. My first account was first reported in March of 2002 and was last reported on in 2007. My second account was first reported in April of 2005 and last reported in May of 2005. Does the 7 years start tolling from the first reporting date or the last?
My Response
Hi [name removed] -
Those two accounts are pretty old and I personally wouldn’t spend a whole lot of time trying to get them removed. They are so old that the impact on your credit is pretty small. I know it feels like an itch that you really want to scratch, but they will be gone in no time. Regarding the 7 year rule: In most cases it all has to do with what is actually being reported –that is, you are looking at 7 years for each negative entry. Therefore, if the first negative entry was reported in March of 2002, you are looking at 7 years for that entry. Each month a negative entry is reported, that entry will remain for 7 years. In other words, don’t look at the account as a whole when attempting to figure out when the account will be removed –look at each individual negative entry associated with that account and figure that that entry will remain for 7 years.
Hope this helps,
-Ryan
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Tuesday, August 4th, 2009
Reader’s Question
Hi there,
I had a bill due around May 2nd, but was not able to pay the bill until May 29th. However, the creditor reported it on my credit report as a late payment. I heard that the creditor only shows deliquencies after 30 days. Am i correct?
My Response
Hi [name removed],
Generally it is the case that creditors only report late payments that are 30+ days late. However, this is not a rule and the creditor could technically report it late at their discretion (given that the payment was indeed late). Nonetheless, I would at least give them a call and ask if they will give you a break and remove the negative entry –you might be surprised.
Hope this helps,
Ryan
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Friday, May 22nd, 2009
I received the following email from Monica on behalf of the Federal Trade Commission. I think this information is important. While she doesn’t specifically mention any particular sources that claim to provide a free credit report, I will: freecreditreport.com is NOT where you get your free annual credit report! Freecreditreport.com will require you to sign up for credit monitoring service and pay a monthly fee in order to get a credit report.
Her email in full is posted below.
Hi Ryan,
I hope this note finds you well.
My name is Monica, and I’m writing on behalf of the Federal Trade Commission’s Bureau of Consumer Protection to let you know about two new videos highlighting the differences between AnnualCreditReport.com – the only authorized source for free annual credit reports – and other sites that only claim to offer “free” credit reports. You and The Better Credit Blog readers know the importance of checking your credit report each year as a step towards improving and maintaining your credit, which is why I thought you might be interested in the videos and in learning more about AnnualCreditReport.com.
Despite the deceiving jingles and musical claims of some TV commercials, the only authorized source to get your free annual credit report under federal law is AnnualCreditReport.com. Other sites require users to pay hidden fees or agree to additional services in order to get a free credit report. If consumers don’t cancel the service during a short trial period, they’re likely to pay membership fees. The FTC encourages consumers not to pay for something they can get for free.
The Fair Credit Reporting Act guarantees consumer access to a free credit report from each of the three nationwide reporting agencies – Experian, Equifax, and TransUnion – every twelve months. With AnnualCreditReport.com, visitors have access to truly free credit reports, with no hidden fees or trial memberships. As mentioned, the FTC has released two videos highlighting the differences between AnnualCreditReport.com and other sites that claim to offer “free” credit reports. Both videos are available at www.ftc.gov/freereports and on YouTube .
I hope you’ll check out the videos, and please feel free to post and share them with Better Credit Blog readers. I’m sure they’ll appreciate knowing about the authorized and free way to get this important information, especially in these difficult economic times.
Please let me know if you have any questions or if you would like more information.
Thank you,
Monica [last name removed]
on behalf of the Federal Trade Commission
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Posted in Uncategorized | 2 Comments »
Monday, February 9th, 2009
Reader’s Question
Hello,
I have been trying to find out if I can remove one of two duplicate accounts on my credit report. Specifically, I have one negative entry from the original creditor who transferred the account to another agency. Then there is another negative entry for the same account from the collection agency who purchased the account. I have already settled this account but I have two bad credit entries for the same account. Can I remove one of them and if so which one.
Thank you
Response
Hi [name removed]
Yes, as long as the multiple negative entries are in fact duplicates and not separate items. If the entry from the original creditor is a late payment and the entry from the agency is a “collection” then it might be difficult to justify these as duplicates. Otherwise, I suggest writing a letter to the agencies stating that these are duplicates and to remove them right away.
Hope this helps.
Best,
Ryan
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Sunday, February 8th, 2009
Reader’s Question
Hello,
I have some negative items that will soon be at their seven year limit and will (hopefully) be removed from my credit report. Can you tell me which credit agency informs you of an estimated date when an item will be removed? Also I was wondering at what point do they start the 7 year “countdown?”
Response
Hi [name removed] -
When you get your credit report directly from Experian, they will include the estimated removal date. I don’t think the other agencies do this. To understand the 7 year “countdown” try to imagine all of your credit entries as bricks in a wall. Most of them are good entries, but scattered throughout the wall there are a few bad bricks. Now imagine that every year a new row is added to the bottom –pushing the other rows up one. Basically, when one of the “bad bricks” hit the seventh row, they are removed. So in that way, its seven years from the date it was added.
Hope this helps,
Ryan
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