Do collection accounts age off your credit report after 7 years?
So I have debt from store lines of credit to a bank credit card. I haven't paid on them since at LATEST December 2007. Chase, citi financial (store line of credit) and Sears line of credit all have it showing closed but I am getting reporting from some debt collector companies.
I live in Arizona and just ordered my actual credit report today. I viewed the information online through a credit score tracking website. I read a lot of comments and researched online somethings. My questions are can any of them take me to court still because from what I read some debts are 3 years and some are 6 here in Arizona, I am not sure what they fall under, also at 7 years they have to stop reporting to my credit so I am told. Does this mean that it will show the old reports but they cant continue to report and since the original lenders have the accounts closed can the debt collector who purchased the debt also show up as a closed account or do they just disappear forever?
Any information to better understand when or if this will ever not be an issue for me would be helpful, as these debts were ran up by my ex and are thousands of dollars I cant and haven't been able to afford to even attempt to fix.
Do collection accounts get removed from my credit reports after 7 years?
—Jennifer
Short answer
Yes, but the clock is not the one most people count from. Negative items stay on your credit report for up to 7 years measured from the first missed payment to the original lender, and every entry tied to that same debt should age off on that same date.
Key points on this page
- Original lenders and creditors show payment default for up to 7 years from when you stopped paying.
- The 7 years starts at the first missed payment to your lender, not at the date a collection agency or debt buyer picked up the account.
- All negative trade lines related to the same collection account should age off at that same 7 year mark.
- Only one entry for a bill should show an unpaid balance. If a debt buyer reports a balance owed, check that the original lender no longer shows one.
- A collection account reporting a newer date of last activity prolongs the credit damage, so compare that date against the original lender’s.
- If the debt is still inside the statute of limitations to sue, a dispute can wake a collector who was not bothering you. Weigh that before sending one.
Original lenders and creditors show payment default on your credit reports for up to 7 years from when you stopped paying on the account.
When you first miss payments to a creditor or lender, you will see late pays show up in 30 day blocks of time on your credit report. If the accounts remain unpaid long enough, those 30 day incremental late pays turn into a charge off reporting on your credit. With credit cards, charge offs normally occur within 180 days of consecutively missed payments (they can happen sooner than 180 days).
The 7 years the negative item stays on your credit report starts from the first missed payment to your lender.
When your accounts get this far behind, it is standard to have the account placed with outside collection agencies, and often repeatedly. Many creditors have a practice of selling off debts that remain unpaid long enough to debt buyers. They are legally transferring the rights to the debt to someone else, as is often laid out in your original contract with them.
Collection Agencies and Debt Buyers Showing Up on Your Credit Report
When an additional entry from a collection agency shows up on your credit report it is important to look for some key items:
- Is the new entry showing a balance due? A debt buyer who reports a collection account to the credit bureaus with a balance owed should be matched with the original lenders negative credit reporting to be certain that the original lender no longer shows a balance is owed to them. You should not have more than one credit entry showing an unpaid and due amount on your report for the same bill.
- Does the collection account show a date of last activity on your report that is different than the date your original lender is showing? Collection accounts that are reporting separate from, but related to an existing negative item on your report, should not show a newer date. If a newer date is used by a collection agency reporting, it prolongs the credit damage and will take longer for you to improve your credit.
All negative trade lines related to the same collection account should age off of your credit report at the same 7 year mark you use to calculate your first missed payment to your original lender. The exception used to be when people got sued for collection and ended up with a judgment over one or more of the debts – which would show in the public records section of your credit report for 7 years from the date judgment was entered in the court.
Most judgments obtained in state courts were taken off our credit reports with Equifax, Experian, and TransUnion as of July 2017
What to Do If You Need to Dispute a Collection Account on Your Report
I will have an upcoming article about disputing incorrect information on your credit report, but for now, it is important to consider the following:
If your debt is within the SOL (statute of limitations), to legitimately sue you for collection, you should carefully consider whether or not to send a dispute about a collection account on your credit report, even if it is showing incorrect information. When there is still room on the clock to sue you, sending a dispute may wake the collector to the fact that you are:
- Still an unpaid account.
- Care enough to start cleaning up your credit report (usually for some credit goals, which means you are more collectible).
If your debts are beyond the SOL to sue you legitimately, you should have less concern about waking a sleepy debt collector who may not have been bothering you, with disputes about getting your credit reports corrected.
Legislation was passed in 2011 that changed the SOL from 3 to 6 years in Arizona. Given the information you shared about 2007 being the earliest date of last payment, your debts may/may not be off of the current debt owner’s radar. You would need to be certain about the date each of account was last paid. Any of them you know were paid last in 2006 would be clear of the SOL.
Reviewing your credit reports for accuracy when you know you have old collection items is important. Staying on top of when and how to get your credit reports corrected will help you plan for future access to credit at fair prices.
If you have a particular issue or question you can post in the comments below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I have a debt on my transunion cr that is from Wilmingtom Financal that was bought off by Citi Financial. back in 2005. The amount is not the same as the Citi Financial amount. The Citi Financial is 95000 and the Wilmingtom Financial is only 21000. The Wilmington Financial debt was sold to Collinsasset which now shows a opening date of Dec 2013
Thank you for your help Mr. Bovee. I have another question. Will these drop off my credit reports if it has been 7 yrs and my SOL is 4 years automatically? Or do I have to write a letter to each credit reporting agency and each debt collector and ask it to be removed? I know you said if a new collections buys my debt they can start with the letters and phone calls but that I can write a cease all communications letter. Would any collector even want to buy my debt unless I won the CA lotto? They obviously can see I have no money and no intent to pay off any old debts after 7 years. Will there be a red flag that just says I didn’t pay my bills that can never be removed? This is why I was considering a bankruptcy? I have no intent on acquiring any kind of new debt or credit card in the future. I just want to be able to rent a decent place to live. Thank you so much for helping all of us with your comments.
Credit card debts will fall off your credit reports after up to 7 and one half years from the date you stopped paying. The original creditor, and the debt collectors that pick up these accounts later, should all be set to age off your credit at the same time. The debt buyers do not get to add on time just because they are new to the scene. If they do, it is often referred to as illegally reaging, which unfortunately still happens. But you can dispute any reaging that occurs with the credit bureaus and even the CFPB.
Check your credit reports after you know the negatives were to be automatically removed. Post an update if anything remains and lets go from there.
This close to all of the collections dropping off your credit reports, the bankruptcy could prevent you reaching your goals at the soonest time possible.
I am primarily interested in raising my credit score. . I Live in Pa. I have 5 original lender credit card entries. All reporting last payments in 2010 and noted as “charged off.” I have collection company entries that the original lenders sold to all with “in collection status”. I have not had any contact with any of these since the last payments to the original lenders in 2010.
In addition I had an apartment rent judgement reporting an which I just paid in full today to the collection agency handling it.
My questions:
1) Once the collection company reports the apartment judgment “paid” to the credit reporting companies, can I get it deleted from the credit reports before waiting 7 years and if so how?
2) Can I get the 5 original lenders that have noted my accounts as “charged off” to delete their entries before 7 years? Are not the collection agency entries duplicates as far as the amount of negative items shown on my reports?
Thanks
The way judgment debts get updated on your credit reports is typically going to be when your local court data miners, that feed the information to the credit bureaus, pick up on the fact the court record has been updated to reflect the judgment has been paid or satisfied. Read over that link and the comments. It is not all that common to get a judgment deleted early, and have that stick.
Getting collections and charge offs deleted before they are scheduled to drop from age is possible with some, and not so much with others, and probably not across all three credit reporting agencies.
What are your credit and financing goals in the next 2 years?
Hello Michael,
I have simple goals. First is to raise my credit score, Right now its averaging 590 with all three credit bureaus. Second is to get a credit card, secured or unsecured, whatever I can get to help me reestablish a credit history. Third is being able to rent an apartment.
The collection company that was handling the apartment judgement sent me a letter stating that I was paid in full. They also said they would send a letter to district court explaining that the judgement has been satisfied.
All this information is helpful but overwhelming at times as I decide on a course of action. Am I heading the right direction?
You are headed in the right direction. I would look at a secured card from BofA or your own bank, or a low limit unsecured credit rebuilding card from Capital One, and soon. When is the last time you applied for credit of any nature?
Unless you are able to negotiate lower balance payoffs on those other collection accounts, you are looking at a balance of establishing new credit, and time passing, in order to rebuild your credit.
You are passed the SOL for the debt collectors to legitimately sue in Pennsylvania. That puts you in a good place to wait this out, or to negotiate good settlements.
What are your thoughts and inclinations?
Hello Michael,
The last time I applied for any type of credit was in 2008. I have not considered BofA or Capital One for a secured or unsecured card because they were the two banks that I defaulted with their credit cards and rightly or wrongly, I just assumed they would deny me for that reason. I have looked at cards from other banks (being careful because some have outrageous fees). Am I wrong to assume they will just arbitrary deny me because of my negative history with them?
Also does it show or does it matter on the credit reports if the credit card is secured or unsecured? One bank, First National Bank of Omaha has decent fees for a secured card and say they will review my history after 11 months to consider opting me to an unsecured card.
Thank you, your comments are invaluable.
Both could decline you (BofA for secured card, Capital One for starter unsecured card), and for the reasons that concern you. Neither bank is well known for maintaining a black list on customers.
I like FNBO. It can matter a bit if the account is secured or unsecured. FNBO does convert to unsecured after some time, so it is as good a place to start as any.
I received a summons for an old credit card debt that is no longer on any credit reports. Need to file an answer back with the court and not sure what to do. Since it has dropped off the reports I’m assuming it is past the SOL. I live in Colorado.
I would not rely on the credit reports for determining if something is too old to be sued for collection in your state.
Do you recognize the debt as yours? Can you determine the date you last made a payment to anyone on the account?
Would paying off a debit that is 6 plus years old improve your credit? I would like to get a new car this summer, but I’m wondering if I settle these two debits, will it improve my credit score at all? Both of these debits are old credit cards accounts from HSBC and Chevron that are scheduled to drop off my report in 06/2016 and 12/2016.
Second question, I sent a validate letter to a collection company and it was delivered Feb 9, 2015. I still have not heard anything from this company, how long do they have to replay??
Thank You for the help!
You may not even be able to get the car loan with unpaid collections on your credit reports. Do you know anyone that works in the auto finance industry? Ask them about what is happening with loans like one you would be looking to get approved.
Settling the old bills can sometimes lead to a drop in your credit scores. How much lower will vary, but not usually by much, and not for very long. Talk about that issue with someone in auto finance too. Where you bank may be a good source of information if they do auto loans.
Debt collectors are generally not under any time constraint for how long they can take to reply to your request for debt validation. They may never respond to you. But they cannot continue to try and collect until they do respond.
Thank You.
I have defaulted on several dept store credit cards as well as a Cap One and also had a car repossessed. I will never be able to settle or make any payment on any debt I have. I have not made one payment since fall of 2008. I do not even have a bank account. I had a 25$ payment to the IRS deducted from my payroll check twice monthly for some back taxes I owed in 2005 until I rec’d a letter telling me they had considered my IRS debt paid due to it being 10 yrs old and I was released of my debt because I had tried to pay it in good faith. If I request a credit report from the 3 major credit reporting agencies will that flag a collection agency? If not, who do I request my report from.
What state do you live in? After close to 7 years of nonpayment on the old debts, and with no intent to negotiate anything with debt collectors, most people do not have to be overly concerned with credit reporting alerts the collectors may view. The debt collectors cannot put any teeth behind their collection efforts when your states SOL to legitimately sue is passed. They may be able to see that you care a little bit about your credit, and that can lead to some collection notices in the mail or some phone calls, but that is about it (depending on your answer to state of residence).
I live in California and I am still getting a phone call from just one collector. I will never buy anything on credit again, even if I could. After a divorce and receiving credit cards approvals in the mail every day and being so stupid to sign the agreements, my life will never be the same again. Will these drop off or should I file a bankruptcy at this point.? I will be renting an apt and they will be doing a credit check so I’m curious after all this time what will pop up or what will fall off. I’m way too old to start my life over again.
The SOL to legitimately sue for collection on these old credit cards is 4 years in California. You do not need to file bankruptcy. It would cause way more harm to your credit at this point.
Check your credit reports and scores at will. If collectors call or write to you at this point, you can write them and request that they cease all communication with you. That will stop calls and letter until some new collector gets a debt. You can repeat the process with the new debt collector. Make sure any letters you send you use certified mail return receipt, and keep a copy of your letter and the little green card you get back in the mail.
My husband has several collection agencies reporting to his credit. Mainly for medical bills. Some of them are set to be removed in early 2016. We live in Ohio. Should we wait for them to just fall off or do we need to pay them? He’s also in the military if that effects anything or not.
It is a good idea to pay them if that is something within your means.
Is there a pressing credit or finance goal you are trying to accomplish in the next year?
I have a student loan that is paid off, and was paid off 7 years ago. However about 10 years ago I had a few payments that were late. This still shows up on my credit report, despite that all accounts in question are closed, and all others are current. My degree is in Economics, and I take courses in financial fields on the side. Will this kill my chances at working in the financial industry? (None of my courses have covered this sort of compliance issue.)
I cannot think of a scenario where some 30 day late pays on credit reports from 10 years back will impact your employment opportunities. Not when you are the right candidate for the job.
Last Reported Jan 31, 2015
Creditor Name USA FUNDS
Account Type
Account Status
Opened Date Apr 11, 2014
Closed Date Jun 30, 2014
i am unsure about this one a friend of mine ask me if usa could report on a closed out acct on her student loans. she said for some reason they keep reporting on it. when does the seven years start? does it start from the time the account is opened dated or last reported? i am unsure on this question.
Student loans underwritten by the federal government are not necessarily limited to the 7 year credit reporting timeline.
Everything in student loans is based off your default date…the date the guarantor paid the claim. They can continue to report for 7 years from that date, even if the loan is paid in full.
Hello Michael , Thank you again for all your help. I got my credit report from Experian and Trans Union showing no such delinquent accounts and Trans Union even sent me a letter saying that there is no such item on my credit report and I personally looked at each report. The company that denied me credit did so in a manner that is not consistent with fair credit evaluation. I have no idea where this information is coming from but it’s annoying and maybe being used against me in an unethical manner . I question the professionalism of this company and I may have them investigated for unfair practices. The item was taken off my credit report late 1997. 18 years ago I don’t think it can get sold over and over to junk debt collectors for that long can it. I noticed some FDCPA info in one of the post . Let me know if this is something I should look in to. Are there other agencies the companies use to gather info for loan applicants.? Thank you again
I sent you an email with contact details to attorneys who normally offer a no cost initial consult, and who can help you weigh your options about the credit denial.
Yes, really old debts are sold over an and over again, and there is nothing illegal about it as of today.
I live in TX. I have 2 accounts that have been charged off. One to Citi Bank that the original credit line was for $4200. I had been making payments then lost my job and went through a divorce, needless to say I quit paying on it. It no longer shows up on my credit but I still get mail from MCM from time to time wanting to settle but the amount they say is owed is over $11,000. The other is with capital one, it is also in collections with MCM. It shows up on my credit report saying that I owe $1,200. the original debt was charged off at about $400. However it is showing an “open” account. I have been reading a lot of what has been posted here. I just need to know how to handle this. I don’t want to run the risk of being sued, but I don’t have the money to pay the “settlement” that they are offering. Any advice would be helpful.
Citibank is no longer on your credit report, but is MCM or Midland Funding showing on your credit for this account?
Is Capital One still on your credit report? Does it show a zero balance owed now that they sold the account to Midland, and now Midland is showing the open account for this debt?
When was it that you can best recall you last paid Capital One or Citibank?
I can offer better feedback if you post a reply with answers to those questions.
Capital One is showing a zero balance. I have not paid on this account since it was charged off in 2009. Midland is showing the account opened in 2011.
Citibank was about the same time as well 2009 when last payment was made. But there is nothing on my report about Citibank or Midland for that amount $11,000 +, but they (Midland) continue to send a bill from time to time.
This is what is showing on my report.
CAP ONE Find a better credit card for you
Account Name: CAP ONE
Account #: I deleated
Payment Status: Charge-off
Account Type: Credit Card
Balance: –
Date Open: 03/01/2008
Last Updated: 01/01/2009
Account Status: –
Terms: Revolving
Phone #: No Phone Provided
Address: PO BOX 85520
Ownership:
Original Creditor: –
Company Sold-to: –
Credit Limit: $300
Monthly Payment: –
Past Due Amount: –
High Balance: –
Balloon Payment: –
Comments: –
MIDLAND FUNDING (844) 236-1959
Account Name: MIDLAND FUNDING
Account #: 853829XXXX
Payment Status: Seriously past due date / assigned to attorney, collection agency, or credit grantor’s internal collection department
Account Type: Collection Account
Balance: $1130
Date Open: 01/01/2011
Last Updated: 04/01/2011
Account Status: –
Terms: 1 Month
Phone #: (844) 236-1959
Address: 8875 AERO DR STE 200
Ownership:
Original Creditor: CAPITAL ONE BANK USA N.A.
Company Sold-to: –
Credit Limit: –
Monthly Payment: –
Past Due Amount: $1130
High Balance: –
Balloon Payment: –
The SOL to sue you legitimately in Texas is 4 years for these accounts, so that appears to have passed. Suing you would not be in the playbook at this point.
As for the credit reporting, Midland Credit should fall off at the same time that Citibank and Capital One do. If they don’t, you can dispute them off as too old to remain.
Are you okay with ignoring the collection attempts? You can write to MCM and tell them to stop communicating with you if you like. Collection calls and letters would stop.
i just check my credit report and it said an update and there were 2 of the old student loan were removed. i know they haven’t got my letter yet.
I have an account from a car loan that went into default in aug 2008, and in 2010 it looks like “somebody” I am assuming the credit union itself has been paying $5 on the account. Is that to try and keep it active? This should be charged off my record in January 2016, so what do you think is going on with them paying $5 a month on the account?
I cannot think of a reason the credit union would apply 5 dollar monthly payments. Your account is showing as past due right?
If your payments were not being made in full, your account is considered delinquent. If 5 dollars is being applied as a monthly adjustment, this is not going to impact the credit reporting time limitations. But if for some reason the account is still on your credit reports after it has been 7.5 years since you first missed payment that led to default, post an update and lets go from there.
they are government student loans
Federally backed student loans can stay on your credit reports for longer than the 7 years.
July 21, 2008 was the last payment made on the child support.
Check to make sure that the child support credit reporting is deleted this coming August after the 7 year mark has passed.
i only mailed out two of them because i had know idea if i was even doing it right or not and i was having issue with it printing out the 3 one. i am going to work on the trying to print out my 3rd on and send it out asap just like i did the other 2. i am hoping to have the 3 one mailed out by Monday. if you disputed something and they basic say to bad. is there a time limit on how long you can dispute it again?
There is not really a time limit per say. If your dispute is obvious, and the credit bureaus balk for whatever reason, it can make for sense in some situations to file credit reporting complaints with the CFPB next, rather than re-dispute.
You did not say whether these were private or government student loans.
i outlined each one like i did for you asking that they remove them or correct them because of how old they were. i kept it really basic because i look every where online trying to find out how to find the information on how to dispute student loans. There was hardly anything. I know i have to pay them and i am but its really confusing to have so many of them on my report i have to read all them just so i know i am looking at the right one. its sad that i found this page after i mailed out my letter. i will keep you up dated on what i find out. now on a different note my husband has a child support 19 years old that is still on his credit report it is paid off he hasn’t had to pay child support since 2008. at on point during him paying child support they stop taking his child support because the employment had made a mistake and was taking the full amount every two week for a year and know one noticed he was over paying. how do we go about disputing that one?
Child support is limited to staying on his credit report for 7 years. What month in 2008 was that last payment made?
i hope this gives you a better idea of what i have going on.
July 10, 2007 balance -$0- on this account. account is closed – Transfer/Sold it has been on credit report for 7 years and 7 months.
July 10, 2007 balance is -$0- on this account Closed – Transfer/Sold. it has been on credit report for 7 years and 7 months.
January 23, 2007 balances is -0- on this account. the account is Closed – Transfer/Sold . It has been on my credit report for 8 years and 1 month.
January 23, 2007 balances is -$0- on this account. the account is Closed – Transfer/Sold . It has been on my credit report for 8 years and 1 month.
April 22, 2008 balances is -$0- this account. This account has been Closed – Transfer/Sold. It has been on my credit report for 7 years and 2 months.
April 22, 2008 balances is -$0- the account has been Closed – Transfer/Sold . It has been on my credit report for 7 years and 2months.
April 22, 2008 balances is -$0- account has been Closed – Transfer/Sold . It has been on my credit report for 7 years and 2 months. I am requesting that the item be removed.
same accounts more than once on my credit report just changing the amount that due and the date they were opened.
United Student Aid Funds c/o Sallie Mae the account is Closed – Transfer/Sold. balance -0-
United Student Aid Funds c/o Sallie Mae the account is Closed – Transfer/Sold . balance -0-
United Student Aid Funds c/o Sallie Mae the account is closed. balance -0-
there is no open date on these 3 it just has 2 lines
Thank You
Chris
Nearly all of these should have aged off your credit reports. I will be interested to learn what the credit bureaus reply with. They should reply within 30 days, and I would expect the majority to come off. But if that does not occur, post an update and lets go from there.
I do not know what you wrote in the dispute letter you sent, but a straight forward approach to this, outlining that the accounts should have aged off, would be hard to misinterpret.
You said you sent out disputes to two of the credit reporting companies. Did the third already have these removed? Were these private student loans?
i am disputing it because of how old they are and that they have been duplicated more than once. each one i have on my credit report is 7 and 8+ years and they are closed with a zero balance 2 of them say derogatory that have been closed for 8 years and 8 months it was last reported on 4/08. the rest of them say collection but they are closed with a zero balance. my student loans are with great lakes and they are current.
Thank you,
Chris
I disputed two accounts that have passed the 7 year mark on my credit and it now says “account information disputed by consumer, meets FCRA requirements”. What does that mean if the account truly is older than 7 years past due? One is from AT&T via EOS CCA and it was opened in 2012 but the phone balance is from 2007. The other is from GE via LVNG FUND opened in 2010 but the account closed also in 2007.
If you are certain that the accounts are 7.5 years old (not just 7 years even), I would file credit reporting complaints with the CFPB.
It appears that LVNV Funding and EOS CCA could have reaged the debt based on the dates you provided. But it may also be that you are not quite passed the 7.4 year mark.
i am not sure if i did this right or even if it will help. i sent out two dispute letters out today two of the credit reports. i had let my students loans get away from me over the years. i am paying on one and the other 2 are in forbearance. on my credit report it says i have a total of 16 student loans how ever all but 3 are closed, sold, transferred, and the balance is zero and the are 8 and 7 years old from the day they opened up them. so i sent out a dispute letter asking for them to be removed or corrected. i am not even sure they can be removed. i don’t have a total of 16 students loan a few of them were only opened for 6 months before they were closed and a new open date was applied to them. any info on students loan on the credit report would be helpful. thank you so much for your help and time.
Thank You
Chris
Are you disputing them as duplicates, not yours, or something else? Are they showing as key derogatory or collections on your credit reports?