***Credit Repair · Riskeypro Academy

***Credit Repair

Each negative item has a federal statute of limitation on when it must drop off your credit report. Once the statute of limitation has expired, the item must be deleted from your credit report according to the Fair Cred-it Reporting Act. The statute of limitation starts 180 days from the date the account became delinquent.

Federal Statute of Limitations

The statute starts 180 days from the date the account became delinquent. For example, if your payment was due on January 1st, but you did not pay it until February 1st, you would be considered 30 days late. Now, count 180 days from February, which will take you to July. This month will be the time the seven-year statute will begin.

Late payments:

Once you become more than 30 days late on any of your bills, the financial institution that you hold a loan with will disclose your late status to the credit bureau. You can be reported as 30, 60, 90, or 120 days late, and by law, the late marks will remain on your credit report for seven years.

Inquiries:

Whenever you apply for a credit card or a loan, your credit report is checked, which results in a hard inquiry. These inquiries could damage your credit score if you have more than six in two months. They can also stay on your credit report for up to two years.

Charge-offs:

These are debts that the creditor felt that they could not collect on anymore after 180 days. So they charged them off as a bad debt. However, the creditor can still sell the account to a third-party collector for collection purposes.

Judgments:

If a creditor takes you to court and sues for a judgment, this destructive item will be placed on your credit report. The courts issue judgments that can stay on your credit report for up to seven-years, but it can be re-newed until it is paid or until it reaches the 20-year mark.

Child support:

If you stop making child support payments, it becomes part of your public record and will therefore show up on your credit report. This negative mark can stay on your report for up to seven years.

Foreclosure/Repossession:

Foreclosures take place when you default on your home mortgage and the bank takes the house back. Re-possession is when you can no longer pay your car note and it goes into default. The lender will then confis-cate the vehicle without your permission and sell it in an auction. Both create negative marks that will re-main on your credit report for seven years.

Tax liens:

Tax liens are public records that will find their way into your credit report if you default on your tax liability with the IRS. Paid tax liens will stay on your credit report for seven years, but while owed, they can remain

on your record forever.

Collection:

If you see an old account on your credit report under the collection trade line, this is a bill that was sold or assigned to a collection agency. It was passed onto the collector from your original creditor because you re-fused to pay. This debt can legally stay on your credit report for up to 7.5 years, but you cannot be sued for it after the state statute of limitation has expired. See appendix for the state statute of limitation on revolving accounts.

Bankruptcies:

Your credit report will list the date you filed for bankruptcy and the time it was discharged. A Chapter 7 bankruptcy can remain on your credit report anywhere from seven to 10 years depending on your state, and a Chapter 13 bankruptcy will remain on your credit report for seven years. A dismissed bankruptcy will stay on your credit report for 10 years even though it was not discharged. A dismissed bankruptcy means you started the proceedings but you changed your mind and decided not to complete the process.

Thank You,

Robin's Credit Development469-729-4457469-729-4457support@robinscreditco.com https://rcdconsultant.com/

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