Does owed credit card debt "drop off" my credit history after 3 yrs?

Does owed credit card debt "drop off" my credit history after 3 yrs?

Postby forde74 » Wed Jan 26, 2011 4:31 am

I heard that in regards to my credit card debt, if I was not able to pay it off, after three years the company can not continue to attempt to collect the debt. Is that true? When will it come off my credit report?
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Does owed credit card debt "drop off" my credit history after 3 yrs?

Postby boas » Wed Jan 26, 2011 4:36 am

It doesent...
Usually it takes 5 years

mainly, theres a marking for your records from different points, like having payment issue swith your modem or cars. This means any dsl provider would take a cover charge from you, because you have previous issues, they take a pawn sort of before accepting you as a client. if you behave, you get pawn back. (IF you are lucky)
If you got car troubles with payments, car sales would state, you need co-signer.

Collecting a debt for more than 5 years is costlyer than just to drop it.
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Does owed credit card debt "drop off" my credit history after 3 yrs?

Postby enosa52 » Wed Jan 26, 2011 4:37 am

That's 7 years. After seven years, negative credit items will drop off of your credit report.

But the lender themselves can continue to try to collect the debt for as long as they like (at least until you pay it, or declare bankruptcy).
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Does owed credit card debt "drop off" my credit history after 3 yrs?

Postby remy67 » Wed Jan 26, 2011 4:43 am

You are confusing state statutes of limitation with credit history. They are separate things. A defaulted debt remains on your credit history for 7.5 years from the date of default per the FCRA.
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Does owed credit card debt "drop off" my credit history after 3 yrs?

Postby corbitt87 » Wed Jan 26, 2011 4:45 am

False,

A creditor can attempt to collect on a debt forever. There is something, however, called the "statute of limitations" on how long you have a legal obligation to pay. It varies from state to state, but depending on your state and the type of debt, it could be as little as 3 years or as long as 15 years.

As for your credit report, derogatory trade lines stay on your credit reports for 7 years after last delinquency.

Bankruptcies remain on your credit reports for 10 years after your date of filing.
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Does owed credit card debt "drop off" my credit history after 3 yrs?

Postby macfarlane » Wed Jan 26, 2011 4:48 am

It depends on what the statute of limitations to collect is on your state.

If you filed bankruptcy it will report for 7 1/2 years from the last time your were late.

Bankruptcy will report for 10 years.

If you filed bankruptcy then they cannot come after it.

If you did not they can still come after it up to the 7 years. But, they cannot collect it if it is past the SOL of your state.
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Does owed credit card debt "drop off" my credit history after 3 yrs?

Postby chalmers » Wed Jan 26, 2011 4:52 am

This should help you to understand how credit scores work..

FICO scores from 300 to 850 and Vantage scores from 501 to 990.

Here is the breakdown for both systems.

Vantage Plus system scores from 501-990.
A-901-990
B-801-900
C-701-800
D-601-700
F-501-600

FICO system scores from 300-850.
Elite-740-& up
Prime-700-739
Preferred-660-699
Standard-625-659
Sub-prime-624-& under

FICO is the only one that matters since it's the one that all major lenders look at.

So as you can see it depends on if your looking at a true FICO score or a Vantage plus score.

As far as what makes up credit scores it's the following;
1. Payment history (longer the better) 35%
2. Time in bureau (longer the better) 15%
3. Types of credit (mix of credit cards & installment loans) 10%
4. New credit (new accounts and inquiries) 10%
5. Debt to credit ratio (lower the better) 30%

And just so you will know Experian only uses Vantage, Equifax only uses FICO and Transunion uses both depending of which type of credit report is requested of which there are 3. The standard that people get from the Internet, the auto enhanced which only car dealers and lenders see and the factual which only mortgage people see. The last two are not available to the general public.

To have the very best score and profile people need 3-4 credit card accounts (revolving) with balances below 30% of their credit limits and 2 cars, homes, boats, motorcycles, computers, furniture or personal accounts (installment) all with good long payment history's.

Add to this that unless you get your scores either direct from either Equifax or myfico.com your getting what's called a FAKO score which makes it even worse because they all have their own system to calculate scores.
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Does owed credit card debt "drop off" my credit history after 3 yrs?

Postby doran » Wed Jan 26, 2011 4:55 am

You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments - buildcredit.ifastnet.com
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