Overview
Negative items are derogatory entries that can lower your credit score and influence lenders’ decisions. The Fair Credit Reporting Act (FCRA) sets maximum reporting periods for most types of negative information. Knowing the exact timelines, what starts the reporting clock, and how status updates (paid, settled, charged-off) affect reporting helps you take practical steps to recover faster.
This article explains timelines for common negative items, how the reporting clock works, dispute options, realistic recovery strategies, and mistakes to avoid. For help getting your baseline credit report, see FinHelp’s guide on How to Get a Free Credit Report.
Timelines at a glance
| Type of negative item | Typical reporting period | Starts from |
|---|---|---|
| Late payments | Up to 7 years | Date of first delinquency (DFD) |
| Charge-offs | Up to 7 years | Date of first delinquency |
| Accounts sent to collections | Up to 7 years | Date of first delinquency |
| Chapter 7 bankruptcy | Up to 10 years | Filing date |
| Chapter 13 bankruptcy | Typically up to 7 years | Filing date |
| Civil judgments (varies) | Up to 7 years in many cases; reporting varies | Date of judgment or state rule |
| Hard credit inquiries | 2 years on report; score effect short-lived | Date of inquiry |
Sources: Fair Credit Reporting Act (FCRA) and Consumer Financial Protection Bureau (CFPB) guidance (see below).
What starts the clock: Date of First Delinquency (DFD)
Most consumer negative items follow the same legal rule: the reporting period generally runs from the date of first delinquency (DFD). The DFD is the first missed payment that led to continuous delinquency and ultimately to a charge-off, collection, or similar status. That single date—not later activity, sale of the debt, or a settlement—controls how long the item may remain on your credit report (CFPB). This means:
- If an account became delinquent on January 1, 2018, the seven-year clock runs from that date even if the creditor charged it off or sold it later.
- Paying or settling the debt does not restart the clock. The status may update to “paid” or “settled,” but the entry’s removal date generally stays the same.
Bankruptcy timelines: Chapter matters
Bankruptcies are treated differently:
- Chapter 7: Can remain on your report up to 10 years from the filing date.
- Chapter 13: Typically remains up to 7 years from the filing date (because the filing often accompanies a repayment plan and discharge timing differs).
Exact treatment can vary by bureau and scoring model, but these are common limits used by the major credit bureaus (CFPB).
Charge-offs, collections, and sold debts
Charge-offs and collections usually appear after prolonged delinquency:
- Charge-off: A creditor writes the account off as a loss—still owed, but moved to a different internal accounting status. It is a negative item reported as of the original DFD and stays up to seven years.
- Collections: If a creditor assigns or sells the account to a collection agency, the collection entry will also reference the original DFD; the seven-year reporting limit still applies.
- Settlement or pay-for-delete: Settling a debt updates status but usually does not remove the original DFD. “Pay-for-delete” agreements are informal, not reliably enforceable, and many mainstream creditors/bureaus will not honor deletions simply for payment. Always get any agreement in writing.
For deeper context on charge-offs and settlements, see FinHelp’s piece on How Charge-Offs and Settlements Affect Your Credit Report Long-Term.
Public records, judgments and the changing landscape
Historically, civil judgments and tax liens could appear on credit reports for years. Since 2017–2018, the major bureaus tightened criteria for reporting public records and most civil tax liens have been removed from consumer files. Still, outstanding judgments or court-ordered liens may appear depending on state reporting and court record content. Expect variability and check your reports regularly.
Hard inquiries and soft inquiries
Hard inquiries (credit applications) remain on your report for two years but usually only affect score for a few months. Multiple inquiries for the same loan type within a short time (shopping for mortgage, auto loan) are often treated as a single inquiry for scoring purposes.
Disputes: How to remove inaccurate or unverifiable negatives
If a negative item is inaccurate, incomplete, or unverifiable, you can file a dispute with the credit bureau and the furnisher (the company that reported the item). Key points:
- File disputes online, by mail, or by phone with the bureau(s) reporting the error.
- The bureau must investigate and respond—usually within 30 days (CFPB).
- Include documentation: account statements, payment records, identity theft reports, court documents, or proof of payment.
- If the furnisher cannot verify the information, it must be corrected or removed.
If your identity was stolen or you find fraudulent accounts, file a police report, complete the FTC identity theft affidavit, and consider placing a fraud alert or security freeze on your file. For steps to add your own explanation, see FinHelp’s guide on The Impact of Credit Report Errors on Your Score and How to Fix Them.
Practical credit-repair strategies while negative items age off
Time alone helps, but active steps accelerate recovery:
- Prioritize on-time payments: Payment history is the single largest factor in most scoring models. Even a single month of on-time payments helps over time.
- Lower utilization: Aim to keep credit utilization under 30%—and under 10% for the best results—by paying down card balances and spreading balances across accounts.
- Keep older accounts open: Length of credit history matters. Closing an old card can shorten your average account age.
- Add positive tradelines: Secured credit cards and credit-builder loans establish steady, positive history.
- Avoid new hard inquiries unless necessary: Multiple new accounts can lower average age and add inquiries.
- Monitor: Pull your reports at least annually from AnnualCreditReport.gov and review each bureau’s file for differences.
Real-world examples
- A mortgage client missed payments in 2016; the date of first delinquency was June 2016. Those late payments and a charge-off remained visible until June 2023, seven years later. By 2019 the client’s score had improved through steady on-time card and installment payments, demonstrating how positive activity helps even before negatives fall off.
- A consumer settled a collection in 2020. The collection stayed on the file with a “settled” status but still referenced the original DFD in 2015; the removal date did not change because the DFD controls the timeline.
Common myths and mistakes
- Myth: Paying a collection deletes it. Fact: Paying or settling changes status but doesn’t automatically remove the entry; the original DFD usually remains.
- Myth: New activity restarts the seven-year clock. Fact: The clock runs from the DFD; later activity generally won’t restart it.
- Mistake: Relying solely on time. While derogatory items do fall off eventually, continuing positive financial habits speeds score recovery.
Frequently asked questions (brief)
Q: Can a creditor remove a negative item if I ask? A: Creditors can request that bureaus remove items, but they’re under no legal obligation to do so unless the information is inaccurate. Get any removal promise in writing.
Q: How long do bankruptcies hurt? A: Chapter 7 up to 10 years from filing; Chapter 13 typically up to 7 years (varies by situation and reporting practices).
Q: If a debt is sold, does the reporting start over? A: No. The original date of first delinquency usually controls the reporting window even after sale.
Action checklist
- Order all three credit reports at AnnualCreditReport.gov and compare entries.
- Note dates of first delinquency for any derogatory accounts.
- Dispute inaccuracies with documentation to each bureau reporting the error (investigation timeframe ~30 days).
- Build positive, on-time payment history and reduce utilization.
Sources and further reading
- Fair Credit Reporting Act (FCRA), U.S. Government Publishing Office — legal limits on reporting periods (see 15 U.S.C. §1681c).
- Consumer Financial Protection Bureau (CFPB) — consumer guides on credit reports, disputes, and timing.
- AnnualCreditReport.gov — official source for free annual credit reports from the three nationwide consumer reporting agencies.
Professional disclaimer
This article is educational and not individualized legal, tax, or financial advice. Credit reporting can involve state-specific rules and unique facts. For questions about your particular situation, consult a qualified credit counselor, attorney, or certified financial planner (CFP®).
