Does your credit look like a train wreck?  I’ve talked to several clients recently who hit a rough spot – and are working their way out.  They had some questions I thought other people might need answered too!

How long does negative information stay on a credit report?

The Fair Credit Reporting Act says that negative information can stay on your report for a minimum of seven years (I always thought that said MAXIMUM – but I was wrong).  There are some exceptions to this:

* Delinquency information like late payments remain for seven years from the DATE OF DELINQUENCY.  This is especially tricky if you have collections that are being sold from one account to the other.  Because the Collection companies are re-filing these delinquencies as if they are brand new offenses!

* Charge-offs stay for seven years PLUS 180 days from the date reported to the credit bureau.

* Student loan defaults report for seven years.

* Foreclosures stay on your report for seven years. The seven year rule also applies to Law suits, judgments and paid tax liens.

* Bankruptcy stays for 10 years from the date you file.*

* UNPAID TAXES stay on your report for 15 years!  Ouch!

If you have questions about USDA Home Loans, or about using FHA or VA Home loans to purchase a home in NC – please call Steve and Eleanor Thorne, USDA Home Loan Experts in NC 919-649-5058