Skip Nav
Good Questions to Ask During an Interview
Job Search
7 Questions That Will Knock the Socks Off Your Interviewer
How to Use Emotional Intelligence in a Job Interview
Job Search
Activate Your Emotional Intelligence to Nail Your Next Job Interview
Tips to De-Stress at Work
13 Ways to De-Stress During the Workday

How Long Will Bad Debt Stay on Your Credit Report?

When you default on payments and the account goes to collections, it's reflected on your credit report for seven years. You might be confused about when this seven-year time period starts. Some people are under the impression that it begins on the date the account became delinquent, some think it's when the debt was reported to the credit bureaus, and others think it starts when the debt has been repaid.

According to the Fair Credit Reporting Act, as of Sept. 1, 2011, the reporting period runs seven and a half years (seven years plus 180 days) from the date of delinquency. This section from the FCRA states the seven-year time frame starts 180 days from the first missed payment:

The 7-year period . . . shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately proceeded the collection activity, charged to profit and loss, or similar action.

Image Source: Shutterstock
From Our Partners
Easy Ways to Make Money
How to Save For College Tuition
Good Lottery Stories
How to Save Money on Groceries When You Have Kids
Year of No Shopping Essay
How to Negotiate a Raise
Ways to Make Money Doing Nothing
Making Extra Income
Frank FAFSA Founder and CEO Charlie Javice Interview
How Does Consigning Work?
Struggles of Being a Paycheck-to-Paycheck Mom
How to Save Money in a Year
From Our Partners
Latest Career & Finance
All the Latest From Ryan Reynolds