There are some exceptions to the seven year statute of limitation. I am informing you about main three exceptions. First exception is 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 they rarely do. Second exception is 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 discloses negative information older than seven years; however, this is rarely done. And the third exception is Information about criminal convictions may be reported without any time limitation.
Sometimes people face some negative information or notations in credit reports. These negative notations are very harmful and create bad effect in credit history. Negative information or notations that appear on your credit report such as a late payment, charge off notation, lien or judgment can remain on your credit report for up to seven years. A bankruptcy can remain on your credit report for up to 10 years. The Fair Credit Reporting Act requires that negative information be deleted after seven years (10 years for a bankruptcy) so that you are not punished for the rest of your life for having once had a bad credit rating. So better to know and aware of negative notations to avoid serious problems.
Different categories of information are identifying information, trade lines, credit inquiries, public record and collection items.
In identifying information your name, address, social security number, date of birth and employment information are used to identify you. These factors are not used in credit scoring. Updates to this information come from information you supply to lenders. Trade lines are your credit accounts. Lenders report on each account you have established with them. They report the type of account such as bankcard, auto loan, mortgage, etc, the date you opened the account, your credit limit or loan amount, the account balance and your payment history. In credit inquiries, when you apply for a loan, you authorize your lender to ask for a copy of your credit report. This is how inquiries appear on your credit report. This inquiries section contains a list of everyone who accessed your credit report within the last two years. The report you see lists both voluntary inquiries, spurred by your own requests for credit, and involuntary inquires, such as when lenders order your report so as to make you a pre-approved credit offer in the mail. As a public record and collection items, credit reporting agencies also collect public record information from state and county courts, and information on overdue debt from collection agencies. Public record information includes bankruptcies, foreclosures, suits, wage attachments, liens and judgments.
We know that each credit reporting agency have different formats and reports information differently but all credit reports contain basically the same categories of information. Information about your social security number, date of birth and employment are used to identify you. These factors are not used in credit scoring. It is recommended that you order your credit report from each of the three credit reporting agencies and make sure that each is accurate and find out which of the three major CRAs your creditors report your information to. Fixing mistakes found on a credit report can take as long as six months to complete, therefore, order your credit reports well in advance of applying for a loan to make sure they are accurate.
Major credit card companies report, as do most finance and loan companies. Other items that may appear on your credit report are liens, such as tax liens, a bankruptcy, judgments, child support obligations in default, and many student loans. Banks, leasing companies, lawyers, doctors and others might report an account if it becomes delinquent or is in default. Your creditors are not required by law to report your payment history to a credit reporting agency. The Federal law that regulates credit reporting agencies (CRAs) is the Fair Credit Reporting Act (FCRA). It holds credit reporting agencies and those reporting information to credit reporting agencies to reporting information accurately and fairly and to re-investigate information that a consumer disputes in a timely manner and make corrections, if necessary.
