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Understanding Credit Report Timelines with O1ne Mortgage

A credit report offers a detailed history of your interactions with creditors, and your active accounts will remain on your reports as long as they are open. However, the duration for which specific types of information—both positive and negative—stay on your credit report can vary from two to ten years.

How Long Information Stays on Your Credit Reports

Understanding the duration different types of information remain on your credit report can help you make informed decisions, especially if you need to rebuild your credit. Here’s a quick overview:

• Open accounts in good standing: Indefinitely
• Closed accounts in good standing: 10 years from the closure date
• Chapter 7 bankruptcy: 10 years from the filing date
• Chapter 13 bankruptcy: 7 years from the filing date
• Collection accounts: 7 years from the original delinquency
• Late or missed payments: 7 years from the original delinquency
• Default, including foreclosure, repossession, and settlement: 7 years from the original delinquency
• Hard credit inquiries: 2 years from the date of the inquiry

How Long Does Negative Information Remain on Your Credit Reports?

The Fair Credit Reporting Act (FCRA) governs how long certain information can legally stay on your credit reports. Negative items, often related to payment history, can significantly impact your credit score and remain on your report for an extended period:

• Chapter 7 bankruptcy: Stays on your credit reports for 10 years.
• Chapter 13 bankruptcy: Remains on your credit report for 7 years.
• Collection accounts: Appear on your credit reports for 7 years from the date of delinquency.
• Late or missed payments: Remain on your credit reports for 7 years from the original delinquency date.
• Default: Stays on your credit reports for up to 7 years from the original delinquency date.

While these negative items can remain on your credit reports for a long time, their impact on your credit score can diminish over time, especially if you practice good credit habits going forward.

How Long Does Positive Information Remain on Your Credit Reports?

The FCRA does not require creditors to remove positive information from your credit reports. Positive information on your open accounts will typically stay on your reports as long as the account remains open. After closing a credit card account or paying off a loan, its positive information will remain on your credit reports for 10 years.

How Long Do Inquiries Stay on a Credit Report?

Credit inquiries occur when an institution requests to review your credit file. There are two types of credit inquiries:

• Hard Inquiry: Appears on your credit report when you apply for credit and stays for 2 years, affecting your FICO® Score for one year.
• Soft Inquiry: Occurs in various situations, such as preapproval offers or employer checks, and stays on your credit reports for 2 years without affecting your credit scores.

How to Remove Negative Information From Your Credit Report

If a derogatory item on your credit report is accurate, it cannot be removed. However, if you find incorrect information, you have the right to file a dispute with each credit bureau. Provide the reason for your dispute and any supporting documentation. The credit bureau will typically resolve it within 30 days.

Time Is on Your Side

Both negative and positive information on a closed account will eventually fall off your credit reports. Even the worst credit mistakes can fade away with time. If you’re uncertain about your credit health, consider registering for a credit monitoring service to get access to your credit report and score.

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. Our team is here to help you navigate your credit and mortgage options with confidence.

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