Negative Information on a Credit Report
Negative notations, such as late payments, charge-offs, etc. remain on your credit report for up to seven years. A bankruptcy can remain on your file for up to 10 years. Information about a lawsuit or an unpaid judgment against you can be reported for up to ten years or until the statute of limitations runs, whichever is longer. Federal law (Fair Credit Reporting Act) requires that negative information be deleted after the specified number of years so that you aren't punished for the rest of your life for having once had a bad credit rating. However, there are certain exceptions to this law that you should be aware of when doing credit repair:
(1) Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit. This means that a prospective employer can be given a copy of your credit report that disclosed the fact that your credit card was charged-off account that occurred more than seven years ago, provided that your salary is $75,000 or more;
(2) Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit. Your mortgage lender or insurance agent can access older, negative information about your payment history. But do they? No, not really. Most lenders don't access old information about you, but be aware that they can legally do this if the amount involved is more than $150,000. So, if you're trying to improve your credit rating to get a lower mortgage interest rate, take notice of this fact if the house you plan to buy is $150,000 or more, as it could possibly result in a higher interest rate.
(3) Information about criminal convictions may be reported without any time limitation.