How long can negative information generally be reported under the FCRA?

Under the Fair Credit Reporting Act (FCRA), negative information can typically be reported for up to seven years from the date of the original delinquency. This includes accounts that were charged off or that went into default. The seven-year reporting period is designed to balance the needs of consumers with the need for accurate information in credit decisions. This helps ensure that individuals aren’t unduly affected by outdated or irrelevant negative information while still providing a reasonable timeframe for lenders to assess creditworthiness based on a person’s recent financial behavior.

While there are specific types of negative information, such as bankruptcy, which can be reported for longer (up to ten years), the general rule for most derogatory marks follows the seven-year guideline. This understanding is crucial for consumers seeking to manage their credit profiles and for lenders evaluating the credit worthiness of applicants.