How Long Does Old Debt Stay on Your Credit Report?

Written by: Ryan (he/him)

3 min read | Published: July 11, 2024

Image for How Long Does Old Debt Stay on Your Credit Report?

When looking at your credit report, there are a lot of different factors that affect your overall credit score. What isn’t talked about enough is what happens when you have delinquent items on your credit report. How long will this item be on your report and affect your credit? What happens once the item falls off the report? Will you still owe that money, or does it disappear? This article aims to help you understand more about those questions.

When do delinquent items fall off my credit report?

Bankruptcies: Seven to 10 Years

There are two types of bankruptcies you can go through: Chapter 7 and Chapter 13. Chapter 7 involves selling off some of your assets to pay off debt. Chapter 7 bankruptcies take 10 years to fall off your credit report. Chapter 13 bankruptcies involve restructuring your debts so they can be paid off in three to five years. Chapter 13 bankruptcies take seven years to fall off your credit report. Bankruptcies are usually the last possible solution to settle your debts.

After these items have fallen off your credit report, you may still owe money, because the items you owed money on don’t just disappear. Depending on the debt you owe, it can show up later down the road. If you’re looking to get rid of the debt completely, the best scenario is to pay it off completely. However, bankruptcies are an exception to the rule — you get to start from a completely fresh slate once they have fallen off or the payment program has been completed.

Collection Accounts: Seven Years

A company can send any unpaid debt to collections. They may hire a collection agency to retrieve their money. In some cases, the collection agency may settle for less money than the total amount owed to clear up the debt. These will stay on your report until the debt is paid, an agreement is made, or the time has passed.

Foreclosures: Seven Years

When a mortgage payment is missed multiple times and a person is unable to continue to make payments, the home often goes into foreclosure. The lender will send multiple forms of communication asking for payment before formally entering the house into foreclosure. Once a home is in foreclosure, the lender will take back the home due to missed payment.

Hard Inquiries: Two Years

A hard inquiry takes place when a creditor pulls your credit to review— often when you apply for a line of credit or a loan. If you include your Social Security number on an application, it can result in a hard inquiry. As you begin opening credit cards, avoid applying for multiple credit cards in a short period of time, because it can negatively impact your credit. Instead, do your research and pick the right one for you.

Late Payments: Seven Years

One late payment can affect your credit score up to 100 points. Payment is considered late after it is 30 days past due. Payment history makes up 35% of your credit score, so missing one payment can really lower your credit score. If you can’t pay off the full balance on your credit card at the end of the month, try your best to make the minimum payment to keep your good payment history intact.

Unpaid Student Loans: Seven Years to Indefinitely

Any amount of student loans that you owe and haven’t paid will remain on your credit report indefinitely until they are paid in full. There are a variety of different repayment options for federal student loans that can help with keeping your loan payments more affordable. Make sure to explore your options when repaying student loans.

Learning the time frame when delinquent items fall off your credit report will help you plan accordingly if you fall behind on any payments. Ultimately, having a better understanding of this topic will lead to smarter financial decisions in the future.