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When deciding to take on fixing your own credit report and overall credit score, there are
Limitations when it comes to your negative credit accounts.
Fact: There is a Statute of Limitations for collections on most revolving and installment credit
accounts on you credit report which varies from state to state (depending on the debt -
i.e.Student Loans).This means that your creditors only have a certain amount of time to
collect a over due debt from you.
I am not suggesting that you don't pay your bills. Your creditor still has the right to sue you in
court for the money you owe them. But, after a certain time - they cannot, as per the statutes
of limitations law. Again, that amount of time depends on the state you reside in.
The statute of limitation's clock starts to tick right around your first delinquency notice from
the creditor. So for example, if you live in the state of Texas and go delinquent on a debt in
January 2007, by February 2011 (4 years from initial delinquency) that creditor cannot sue
you nor collect the debt whatsoever. In addition, the three major credit bureaus legally have
to remove that delinquent debt from you credit report. Removing negative credit from your
credit report can shoot you credit score up drastically.
This is why it is so very important to order a free annual credit report and make sure the debt
are correct. The credit bureaus will not do the work for you. You must identify the negative
outdated debts on your report and request to the credit bureaus that they remove them at
once.
Lets say you have 3-5 legally outdated debts on your report according to the statutes of
limitations in your state, and you remove all of them successfully over a 2 months period -
you score will sky rocket.
Disclaimer: Please do not substitute this information for legally advice. It is always smart to get the advice of a licensed
professional or attorney before making such long-lasting decision, such as credit repair.
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