Expert: Regan Shinski - 10/2/2009

Question
I've began to repair my credit on my own. Over the years I have kept an eye on my credit report. I looked over a recent copy a few days ago and I realized that the report date had changed on a few of my accounts from years ago. My question to you is, is this something that needs to be disputed? if so what type of letter should be mailed in. Also I read that things can be erased from your credit within seven years and 180 days, if I decide to pay off my debt will that reset the time?

Answer
Hi Ashanda:

I would not dispute the report date.  It's the date the creditor reports it.  They are under no obligation to do so or not to do so and only has indirect - if any - affect on your score.  

The seven year thing is basically as follows:

Accounts generally stay on your report for seven years from the date of first delinquency.  This is basically the date the account became thirty days late and was never caught up again.  IF the account goes on to be up to 180 days late, is sent to collections or is charged off, the Fair Credit Reporting Act allows for the information to be kept on for seven years from THAT date.  The 180 day, charge off or turned over to collection date.  This is how you can get up to 7.5 years from that first 30-day late in some cases.  In no case should a common, non-litigated account stay on for longer than 7.5 years from the date of first delinquency.

Paying a debt on a collection or closed account will not affect this date.  However if it is an open account, making it current DOES reset the clock.

As a complete side note, paying a collection likely will not give you a major bump in your credit score in most cases.  Almost always, we frankly advise people not to pay them from a credit standpoint. This is different if you feel a moral obligation to pay them or are under threat of a lawsuit that you will likely lose.

Additionally, you should check the statute of limitations for these debts in your state.  You cannot be successfully sued if the statute of limitations has passed - unless you fail to show up.  You have an affirmative defense in that case.  They cannot win if you simply show up and point out the statute of limitations has passed.

Good luck in whatever you choose to do.  I will say proper credit repair is a MAJOR undertaking.  I have been doing it for over ten years and have deleted literally hundreds and hundreds of derogatory accounts.  My prices are reasonable and I customize each technique to your specific case.  I don't just send form letters that have little chance of success.  Contact me if you would like some help.

Regan
mbscompany@aim.com
813-454-1459