Will my bad credit history really be "erased" after 7 years?
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I used to behave financially irresponsible when I was younger, and I continue to pay the price for this. It’s really hard for me go get credit, and if I do manage to get approved, the terms are really bad.
Will my bad credit history really be “erased after 7 years? I mean will I ever get the chance to get a clean start?
Yes, with some exceptions
Most negative information is really erased from your credit report after 7 years. Only bankruptcies & in some states tax liens remain longer. You can see a complete list of credit report time frame here. If an item doesn’t automatically fall off after the legal you can always dispute it.
This may in did give you a fresh start with respect to new credit, but in no way does it suggests that your trebles are over.
You are still held liable for paying off your obligation, regardless of whether the credit report time frame has passed. Lenders can file a law suit against you many years after a bad account fell of your credit report.
The legal time frame to file a law suit against you is called the Statute of Limitations. The SOL depends on the type of debt and varies between states. The only problem is that the SOL clock can restart every time someone does something with the debt. Even a phone call or a letter is good enough to restart the clock, so theoretically you may be held liable forever.
Good luck…
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