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Laws > FCRA (1)
THE FAIR CREDIT REPORTING ACT
Reporting guidelines
Bankruptcy
Accounts that are voluntarily closed by the consumer
Disputing Inaccurate information
Reinserting previously deleted material
Unfortunately, credit problems are not only limited to our immediate ability to manage our finances and make payments on time. If you were past due on credit obligations and brought your account(s) back to a current status, the damage that was done while you were behind may follow you for a while. Being current on credit obligations bodes well for you in that it demonstrates your ability to afford to meet immediate obligations, but the creditors are also interested in your “past track record” because they fear that there may be a correlation between past history and future expectancy. To remove derogatory information from your credit, your credit often has to stand the test of time. You can improve your credit by bringing your accounts current and remaining current on your obligations. Staying current on your obligations demonstrates that your finances are more stable and that you can effectively manage your finances and your debt. To understand the rules that govern how long information can stay on your credit report you need to understand the Fair Credit Reporting Act.
The Fair Credit Reporting Act created rules that govern reporting of information as it appears on credit reports. Initially, the parameters of reporting guidelines in the Fair Debt Collection Practices Act were vague. Most information could remain on a consumer’s credit report for approximately 7 years (Bankruptcy could be reported for up to 10 years) but the limits of when the seven-year period began and ended were not clearly defined. In 1996 the Consumer Credit Reporting Reform Act was created to clarify the credit reporting guidelines that are set forth in the Fair Credit Reporting Act.
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