How Long Negative Info Stays on Credit Report

Most negative items fall off a credit report after about seven years, but some bankruptcies can last up to ten years and certain older public records (like tax liens) can follow different rules depending on when and how they were reported. Understanding those timelines helps you know when a black mark should disappear and when to dispute something that is hanging around too long.​

Big picture: the “7‑year rule”

In the U.S., the Fair Credit Reporting Act (FCRA) caps how long most negative information can be reported, which is usually seven years from the event that made the account go bad. The clock normally starts at the date of first delinquency—the first missed payment that leads to the account never being brought current again, not each later collection or sale.​

• Most negative accounts and late payments: up to 7 years from the first serious delinquency date.​

• Some public records and bankruptcies: up to 10 years, depending on the type.​

A key point for readers: the timeline is about reporting, not whether the debt is legally collectible, which is governed by separate statute‑of‑limitations laws.​

Late payments: 7 years from first serious miss

Late payments are usually listed as 30, 60, 90, 120 days late and so on, all tied to the same account. If you never catch up and the account stays delinquent until it is charged off or closed, all of those related late marks must be removed seven years after the original delinquency that started the chain.​

• If you fall behind but then bring the account current and keep it current, the late mark still can stay up to 7 years from the month it happened.​

• If you never bring it current, the entire negative account history tied to that first missed payment must drop off by the 7‑year point.​

When readers see lates older than seven years from that first miss, they can treat them as “obsolete” and dispute them as outdated.​

Collections and charge‑offs: 7 years plus up to 180 days

Collections and charge‑offs often confuse people because the account may move between collectors or show multiple entries, but the reporting clock does not restart each time it is sold. For most debts, the maximum reporting period is about 7 years from the date of first delinquency, with the law allowing up to an extra 180 days to account for the time a lender typically waits before charging off or sending it to collections.​

• A collection or charge‑off may appear for up to 7 years plus 180 days from when you first fell behind on the original account, not from when the collection agency got it.​

• If the original account must be removed because the 7‑year window has passed, any related collection entries tied to that same debt should also be removed.​

Blog readers should note that paying a collection does not restart the federal reporting clock, even though it may change how the item is labeled (for example, “paid collection”).​

Bankruptcies: 7 to 10 years

Bankruptcy is one of the longest‑lasting marks on a credit report, and its timeline depends on the chapter filed. The bankruptcy case itself is a public record entry, and then each account included in the bankruptcy is also reported with its own aging clock.​

• Chapter 7 bankruptcy can be reported for up to 10 years from the filing date under federal rules.​

• Chapter 13 bankruptcy may also be reportable for up to 10 years, but many major bureaus choose to remove completed Chapter 13 cases after about 7 years as a business policy.​

The individual debts discharged in bankruptcy typically must be removed within about 7–7½ years from the bankruptcy filing date or from the original delinquency, whichever applies, so readers should watch for accounts that linger beyond that window.​

Tax liens and other public records

Public records on credit reports have changed over the past several years, with many consumer credit files no longer showing most civil judgments or many types of tax liens, but older entries can still appear on some reports or specialty background checks. When they do show, their timelines are often similar to or somewhat longer than the standard 7‑year rule.​

• Historically, many civil judgments and tax liens could appear for 7 years or more, depending on state law and whether the obligation remained unpaid.​

• Even where reporting is allowed, bureaus often choose to purge older public records to reduce errors and comply with evolving standards, so recent reports may show fewer liens than in the past.​

For a blog, it helps to emphasize that anyone seeing very old public‑record negatives—especially beyond 7–10 years—should verify whether those items are still permitted and dispute if they are outdated or inaccurate.​

When an item should drop off – and what to do if it doesn’t

A practical way to teach readers is to anchor everything to the “starting event” and then apply the standard window. If an item is still showing after that, it is a strong candidate for a dispute.​

• Identify the date of first delinquency or filing (for late payments, collections, charge‑offs, and bankruptcies) and count forward 7–10 years, depending on the item.​

• If the negative mark remains after that window, file a written dispute with each bureau that is still reporting it, and include dates and any documents; bureaus generally must investigate and respond within about 30 days.​

A closing reassurance for readers: the impact of negative items usually fades long before they vanish completely, and combining disputes of outdated errors with consistent positive habits—on‑time payments and lower balances—can rebuild a healthier profile even while some older marks are still aging off.​

"The Klarna Method" Scam

The so‑called “Klarna method” popping up in Detroit is a perfect example of how a viral online “hack” can quietly turn into a real‑world credit nightmare. It looks like fast money on social media, but behind the scenes it is garden‑variety fraud that can destroy both the victim’s and the scammer’s financial future.

What Is the “Klarna Method”?

On social platforms, the “Klarna method” is promoted as a “glitch,” “loophole,” or “method” for getting high‑priced items like phones and electronics with little or no intention of paying for them. In reality, it is usually done with stolen identities, or by people deliberately taking out Klarna credit and never planning to repay it. At its core, it is just buy‑now‑pay‑later (BNPL) abuse wrapped in slick marketing and coded language.

In Detroit and other cities, the method often involves targeting stores that accept Klarna, rushing through big purchases, and then reselling the goods for cash. The scam looks local because videos might show Detroit malls or neighborhoods, but the underlying technique is the same one being shared in private Telegram groups and viral clips everywhere. The geographic label mainly serves to make the “method” feel more real and urgent to viewers.

How the Scam Actually Works

From a fraud perspective, the “Klarna method” is not sophisticated; it relies on speed and volume, not clever coding or a real exploit. The basic pattern usually looks like this:

• Fraudsters get “fullz” – stolen identity packages containing name, Social Security number, date of birth, address, and sometimes existing credit data.

• Using these details, they open a Klarna account or BNPL line in the victim’s name, taking advantage of fast approval and minimal friction.

• Once an account is approved and a limit granted, they immediately buy high‑value items such as phones, laptops, game systems, and designer goods.

• The items are quickly flipped for cash, often at a steep discount, through online marketplaces, in‑person meetups, or local resale networks.

• The account is abandoned, payments are never made, and the first time anyone really “notices” is when late notices or collections activity begins.

In some cases, people are talked into participating with their own real identity, convinced that there is a “glitch” that will somehow erase the debt later. These individuals are not victims of identity theft; they are simply taking on debt they cannot or do not intend to repay, which has its own serious consequences.

Why It Destroys Credit

The impact on credit is where the “Klarna method” goes from being a bad idea to a long‑term financial disaster. Credit scoring systems treat BNPL and related accounts in different ways, but the damage comes from missed payments and collections, not from the brand name on the account.

For identity theft victims, the fraudulent Klarna account can:

• Show up as a new credit line or loan in their name.

• Quickly go late, leading to derogatory marks and potential collections.

• Drag down credit scores, sometimes by hundreds of points, affecting car loans, mortgages, and even job or apartment applications.

For people doing the scam in their own name, the story is even more straightforward:

• Every missed payment and every collection gets recorded as a serious negative event on their credit file.

• Those negative marks can stay for up to seven years, increasing the cost of borrowing or closing off access to credit entirely.

• If they repeat this behavior with multiple BNPL providers, they can essentially “burn” their entire profile in a very short period.

The key idea is this: BNPL does not sit outside the credit system. Once you fail to pay and a debt is sold or placed with collections, it becomes a standard, damaging entry in the credit reporting ecosystem.

Legal and Personal Risks

Beyond the numbers on a credit report, the “Klarna method” carries real legal and personal risks.

For fraudsters using stolen identities, common charges can include:

• Identity theft and related offenses.

• Bank, wire, or access‑device fraud.

• Organized retail fraud, especially if multiple people and stores are involved.

Law enforcement agencies in many areas are increasingly aware of BNPL abuse patterns, especially when they involve large electronics purchases and obvious reselling activity. The fact that the scam is being openly bragged about on social media only makes investigations easier.

For people who “just go along” because a friend or influencer promised it was safe, the risk is twofold: they can be charged as participants in the fraud, and they are left with badly damaged credit that may take most of a decade to fully repair.

How to Protect Yourself

If you live in or around Detroit and are seeing this trend circulate, there are concrete steps to take, whether you are worried about being targeted or already think something is wrong.

To lower your risk of becoming a victim:

• Freeze or lock your credit files if you are not actively applying for new credit, so new BNPL or credit accounts cannot be opened without your knowledge.

• Use strong, unique passwords and enable two‑factor authentication on your email and financial accounts, which are often used to reset access.

• Be extremely cautious about sharing your Social Security number or uploading ID photos, especially to unverified sites or “method” groups.

If you suspect your identity was used:

• Pull your credit reports from all major bureaus and look specifically for unfamiliar BNPL or Klarna‑type accounts.

• Dispute any fraudulent accounts immediately and document everything: dates, reference numbers, and who you spoke with.

• Place a fraud alert or extended fraud alert on your file, and consider filing an identity theft report and a local police report to create a formal paper trail.

The big lesson from the “Klarna method” story is that financial shortcuts almost always come with invisible strings. What looks like free money today often shows up a few months later as denied applications, higher interest rates, collections calls, and, for some people, a criminal case. Steering clear of “methods” and focusing on legitimate ways to build or rebuild credit is slower, but it is the only path that does not turn into a crisis down the road.

How Items on Credit Report Affect Different Scoring Models

How late payments, collections, utilization, and inquiries show up on a credit report can move your FICO and VantageScore in slightly different ways, even though both models look at the same basic data. A blog on this topic should explain the shared foundations first, then highlight where the models diverge so readers know what really matters for each.​

Intro: Same data, different math

Both FICO and VantageScore pull information from your credit reports and turn it into a three‑digit number lenders use to judge risk. They look at similar ingredients—payment history, amounts owed/utilization, length and mix of credit, and recent credit behavior—but weigh them a bit differently.​

• FICO’s classic model emphasizes payment history (about 35%) and amounts owed/credit utilization (about 30%), with the rest spread across length of history, new credit, and mix.​

• Recent VantageScore versions (3.0 and 4.0) lean even more heavily on payment history (around 40–41%) and give more structured tiers of influence to age/mix of credit, utilization, balances, recent credit, and available credit.​

For readers, the key idea is that the same late payment or new inquiry may not produce exactly the same score movement in each model, even though both see the same event.​

Late payments: the biggest shared threat

Payment history is the single most important factor in both FICO and VantageScore, so late payments and delinquencies can be devastating in any model. Both systems track whether you pay on time, how late you are (30, 60, 90 days), and whether accounts have gone into default, charge‑off, collection, or bankruptcy.​

• In FICO, missed payments on revolving accounts (like credit cards) and installment loans (like auto or student loans) hurt most when they are recent and severe; a fresh 90‑day late can drop scores far more than an older 30‑day late.​

• VantageScore 3.0 and 4.0 also treat payment history as “extremely influential,” and similarly punish recent serious delinquencies, but they may react more visibly to patterns—like multiple accounts falling behind around the same time.​

When writing, stress that on‑time payments are the single most powerful habit for both models, and that rebuilding after a major late or default means stacking a long streak of perfect payments.​

Collections: paid vs. unpaid and medical nuance

Collections are one of the most confusing areas for consumers because FICO and VantageScore versions do not all treat them the same way. A collection shows that a creditor gave up on regular billing and turned the account over to a collector, which both models see as a strong negative signal.​

• Some newer FICO versions (like FICO 9) reduce the impact of paid collections and treat medical collections more leniently than other types, though many lenders still use older FICO versions where any collection can be heavily damaging.​

• VantageScore 3.0 and 4.0 go further by ignoring all paid collections and excluding medical collections (paid and unpaid) from score calculations entirely, which means paying off a collection can help your VantageScore more visibly than certain FICO variants.​

Highlight for readers that:

• A collection can crush both scores when it first appears.

• Paying it can improve matters, but the benefit may show up more quickly or clearly in VantageScore, depending on the exact FICO model a lender uses.​

Utilization: how much you use vs. what you owe

Credit utilization—the share of your revolving credit limits you are using—is a core piece of the “amounts owed” category, and it plays a starring role in both scoring systems. Even if you pay on time, maxed‑out cards tell models you may be stretched thin and more likely to miss payments.​

• FICO treats “amounts owed” (which strongly features utilization) as about 30% of the score, focusing mainly on your most recently reported balances versus limits.​

• VantageScore 3.0 and 4.0 call utilization “highly influential,” around 20% of the total, and separate it from other balance‑related factors like total balances and available credit.​

A key modern twist is VantageScore 4.0’s use of “trended data” from the past up to two years, looking not just at your current utilization, but whether you routinely revolve balances or pay them down over time. For blog readers, this means:​

• Paying your cards down before the statement date can quickly help both FICO and VantageScore because lower reported balances mean lower utilization.​

• Consistently reducing debt month after month can matter even more for VantageScore 4.0, which can reward positive trends instead of just a one‑time snapshot.​

Inquiries and new credit: how “shopping around” is treated

Every time you formally apply for credit, a hard inquiry appears on your credit report, and both FICO and VantageScore treat that as a sign of potential new risk. A few recent inquiries are normal, but a cluster of them can signal financial stress or aggressive borrowing.​

• FICO groups rate‑shopping inquiries for certain loan types—mortgages, auto loans, and student loans—into a single event when they occur within about a 45‑day window, minimizing the impact on your score.​

• VantageScore also “dedupes” inquiries, but it typically uses a shorter 14‑day window and may apply this treatment more broadly to different types of credit, such as personal loans and credit cards, depending on the version.​

In a blog, you can guide readers with clear practices:

• Space out discretionary applications for credit cards and personal loans so you do not stack many inquiries in a short period.​

• When rate‑shopping for major loans, submit applications in a tight window to take advantage of inquiry deduplication in both models.​

Pulling it together: practical takeaways for both scores

Although the formulas differ, the habits that protect both FICO and VantageScore are remarkably similar. Emphasize that chasing tiny differences between models matters less than building strong underlying report data.​

Core habits to spotlight in your blog:

• Pay every bill on time, every time; avoid letting accounts slip into collections, and act quickly if you fall behind.​

• Keep revolving utilization low—many experts suggest staying well below 30% of your total limits, and lower is often better if you can do it safely.​

• Limit new applications, especially if you are planning a major loan, and cluster rate‑shopping inquiries into a short window.​

• Maintain older accounts in good standing to preserve a deeper credit history that supports both scoring systems.​

If you share your target audience and word count, a more tailored version of this blog can be drafted with headings, examples, and calls‑to‑action that match your brand voice.

What is TeleCheck?

TeleCheck is a check‑verification and check‑acceptance company that helps stores and other businesses decide whether to accept a check or certain bank‑account payments. It acts like a specialized consumer reporting agency that focuses on your check‑writing and bank‑account history rather than on loans and credit cards.​

What TeleCheck Does

TeleCheck keeps a database of check‑writing history and related banking data, including things like bounced checks, unpaid returned items, suspected fraud, and some account information. When you write a check at a merchant that uses TeleCheck, the merchant enters your check details and TeleCheck quickly returns an approve/decline decision based on its risk models.​

How It Affects You

If TeleCheck’s system flags you as risky (for example, prior unpaid checks or fraud alerts), your check can be declined even if you currently have money in your account. Because TeleCheck is treated as a consumer reporting agency, negative records can make it harder to pay by check or even open some accounts until issues are resolved.​

Your Rights And Disputes

You can request a copy of your TeleCheck report and dispute incorrect information, similar to how you would with a credit bureau. If a check is declined, you are entitled to an explanation and can use that information to contact TeleCheck, challenge errors in writing, and ask for corrections or removal of wrong entries.

What is LeasingDesk?

“LeasingDesk” (often shown as “LeasingDsk” on a credit report) is a tenant‑screening service operated by RealPage that landlords and property managers use to check rental applicants.​

What LeasingDesk Does

LeasingDesk pulls information such as your credit data, rental and payment history, criminal records, income, debt, and eviction records to generate a screening report and a pass/fail‑type score for landlords. Property owners use that report to decide whether to approve, deny, or add conditions (like a higher deposit) to your rental application.​

Why It Shows On Credit Reports

When a landlord uses LeasingDesk to screen you, the system can trigger a hard inquiry on your credit report under a name like “LeasingDsk” or “LeasingDesk Screening.” That inquiry may slightly lower your credit score for a time and generally stays visible for up to two years, similar to other hard pulls.​

Your Rights And Next Steps

LeasingDesk/RealPage is treated as a consumer reporting agency, so you can request a copy of your tenant‑screening report and dispute incorrect information under the Fair Credit Reporting Act. If you see “LeasingDesk” on your credit file and were denied housing or believe something is wrong, contact RealPage/LeasingDesk for a copy of your report and then dispute any errors in writing with documentation.

LeasingDesk screening can affect your credit report mainly by adding a hard inquiry and, in some cases, by helping landlords decide based on information pulled from your credit history.

Hard inquiry on your report

When a landlord uses LeasingDesk (RealPage) to screen you, the system usually pulls your credit file from a bureau, which creates a hard inquiry labeled something like “LeasingDsk” or “LeasingDesk Screening” on your credit report.​
A hard inquiry can cause a small, temporary drop in your credit score, and the inquiry generally remains visible on your credit report for up to two years, though its impact on your score lessens over time.​

Effect of multiple applications

If you apply for several apartments in a short period and each landlord uses LeasingDesk or similar services, you can accumulate multiple hard inquiries.​
Multiple inquiries in a short timeframe can have a bigger negative effect on your score, especially if your credit history is thin.​

Information LeasingDesk uses

LeasingDesk uses your credit information (along with rental, eviction, criminal, and income data) to generate a pass/fail‑type tenant score for landlords, but it does not create your main credit score itself.​
Problems arise if the underlying data in your tenant report is wrong, because bad information can lead to denials of housing even if your regular credit score is decent.​

What you can do

You have the right under the Fair Credit Reporting Act to request a copy of your RealPage/LeasingDesk consumer report and dispute any errors, just like with a credit bureau.​
If you see a LeasingDesk inquiry you do not recognize or you were denied housing and suspect a mistake, request the report from RealPage, dispute inaccurate items in writing, and consider speaking with a consumer‑rights attorney if the errors are serious or not corrected.

ChexSystems and Consumer Issues

ChexSystems is a nationwide “banking credit bureau” that keeps track of people’s checking and savings account history, especially problems with deposit accounts.​

What ChexSystems Does

ChexSystems is a specialty consumer reporting agency that collects negative information about deposit accounts, such as unpaid overdraft fees, bounced checks, involuntary account closures, and suspected fraud. Banks and credit unions use ChexSystems reports and scores to decide whether to approve you for a new checking or savings account.​

How It Affects You

If your ChexSystems report shows serious or repeated banking issues, a bank can deny your application for a new account or place restrictions on you. Negative entries typically stay on your ChexSystems file for about five years, which can make it harder to open regular bank accounts during that time.​

Your Rights

ChexSystems is covered by the Fair Credit Reporting Act, so you are entitled to a free copy of your ChexSystems report (usually once every 12 months) and you can dispute inaccurate information. If a bank denies you due to ChexSystems, you should receive an “adverse action” notice telling you which reporting agency was used and how to request your report.

ChexSystems has several common problems for consumers: inaccurate or outdated negative records, difficulty opening accounts because of a single mistake, and frustrating dispute or access processes.​

Typical Consumer Issues

• False or mistaken negative entries (like accounts that are not yours, paid debts still showing, or mis-labeled “account abuse”) can get people wrongly denied new bank accounts.​

• Negative items can linger for up to about five years, so even a resolved problem may keep causing denials if it is not updated or removed.​

Disputes And Reinvestigation

• Consumers often report that disputes take a long time, receive “generic” responses, or result in ChexSystems simply confirming what the bank reported without fully investigating.​

• If ChexSystems or the bank fails to correct clear errors, people may need to escalate with written disputes, complaints to regulators, or legal help under the Fair Credit Reporting Act (FCRA).​

Access And System Problems

• Some consumers have trouble even accessing their online ChexSystems portal or getting a copy of their report, which makes fixing problems harder.​

• Complaints describe being bounced between ChexSystems and other vendors or banks, with neither side taking responsibility for technical glitches or incorrect data.​

How These Problems Affect You

• Being flagged by ChexSystems can mean repeated denials for basic checking or savings accounts, forcing people into high‑fee alternatives and making everyday finances more difficult.​

• This can indirectly affect overall financial health, even though ChexSystems itself does not control traditional credit scores with Equifax, Experian, or TransUnion.​

If you are experiencing problems, get your free ChexSystems report, identify specific errors, dispute in writing with documentation, and consider talking with a consumer‑rights attorney if denials or errors continue.

What is Early Warning Services, LLC?

Early Warning (usually “Early Warning Services” or EWS) is a bank‑owned financial technology company and consumer reporting agency that tracks people’s checking and savings account activity and helps banks detect fraud and assess risk.​

What Early Warning Does

Early Warning collects information about your deposit accounts, such as account status, overdrafts, negative balances, unpaid fees, account closures, and suspected fraud or misuse. Banks and credit unions use this data to decide whether to open new accounts for you, keep existing accounts open, and to verify that deposits and payments are legitimate.​

Who Owns Early Warning

Early Warning is co‑owned by several of the largest U.S. banks, including Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank, and Wells Fargo. It also owns and operates Zelle, the peer‑to‑peer payment network used by thousands of banks and credit unions.​

How It Affects Consumers

Early Warning works somewhat like a “banking version” of a credit bureau: banks pull an Early Warning report to see your banking history before approving a new checking or savings account. Negative data on that report can lead to denials or closures of bank accounts, even though it does not directly change your credit scores with Equifax, Experian, or TransUnion.​

Your Rights And Access

Because Early Warning is a consumer reporting agency, it is covered by the Fair Credit Reporting Act, which gives you the right to request a copy of your report and dispute inaccurate information. You can request your Early Warning consumer report directly from the company, usually once per year at no cost.

How It Can Harm You

Negative entries on an Early Warning report can cause banks and credit unions to:

• Deny new checking or savings account applications, even if your credit scores are good.​

• Close existing accounts or restrict services if they view you as a fraud or account‑management risk.​

• Treat you as higher risk for other products (like overdraft lines or some cards) because of unpaid fees, repeated overdrafts, or fraud flags.​

These denials and closures do not usually show up as “late payments” or “collections” on your regular credit report unless the bank separately sends an unpaid debt to collections, which can then appear with the credit bureaus and directly damage your credit scores.​

Indirect Damage To Your Credit

Early Warning can indirectly hurt your credit by making it harder to manage your finances smoothly:

• If you cannot open a mainstream bank account, you may rely on prepaid cards, check‑cashing, and high‑fee services, making it easier to miss bill payments or fall behind on debts that do report to credit bureaus.​

• If a bank closes an account with a negative balance and sends that balance to a collection agency, that collection can be reported to the credit bureaus and lower your credit scores.​

In that sense, Early Warning itself is not changing your scores, but it can start a chain of events that leads to negative items on your actual credit reports.

Errors And Legal Problems

Like credit reports, Early Warning reports can contain mistakes or outdated information, such as incorrect fraud flags or amounts owed. In the past, Early Warning has faced legal action for problems with how it handled consumer information and disclosures, which shows that inaccurate or poorly explained entries have led to people being wrongly denied accounts.​​

What You Can Do

If you think Early Warning has damaged you:

• Request a free copy of your Early Warning consumer report and review it for errors or unknown accounts.​

• Dispute any inaccurate or incomplete information in writing, with copies of supporting documents such as bank letters or statements.​

• If an error has caused repeated denials or serious financial harm and disputes have not fixed it, consider speaking with a consumer‑rights or credit‑reporting attorney about your options

When Do Credit Card Companies Report to Bureaus? Timing Matters for Your Credit Score

Credit card companies play a crucial role in shaping your credit profile by regularly reporting your account activity to the major credit bureaus—Experian, Equifax, and TransUnion. However, many consumers are unclear about exactly when this reporting happens and how it can impact their credit scores. Here’s what you need to know.

When Do Credit Card Companies Report?

• Frequency: Most credit card companies report your account information to the credit bureaus once a month. However, there is no universal day or date—reporting schedules vary by issuer and even by individual card.

• Typical Timing: The most common time for reporting is at the end of your billing cycle, also known as your statement closing date. This is the day your monthly statement is generated, not necessarily your payment due date.

• Variations: Some issuers may report in the middle or at the end of the month, and the reporting may not be on the exact same day each month. In some cases, companies might batch data and report all customer accounts at once, which could add days or weeks between your statement closing and reporting to the bureaus.

• Different Bureaus, Different Dates: Credit card companies don’t always send updates to all three bureaus simultaneously, so updates can appear on each report at slightly different times.

What Information Is Reported?

Credit card companies typically report:

• Your account balance as of the statement closing date

• Credit limit

• Payment history (including any missed or late payments)

• Account status (open, closed, delinquent, etc.)

Why Does the Reporting Date Matter?

• The balance reported is usually the one from your statement closing date, not after your payment due date. This means if you pay your balance in full after the statement is produced, a higher balance may still be reported.

• Since credit utilization (your balance vs. your credit limit) is a major credit score factor, understanding your card’s reporting schedule can help you optimize your reported balance for a better credit score. Many people choose to pay down their balance before the statement closing date to minimize reported utilization.

How Can You Find Your Reporting Date?

• Look for the statement closing date on your monthly statement, which is often a consistent date each month.

• Some credit card companies will tell you the reporting date directly if you call customer service or check your online account features.

• Credit monitoring tools or services may display when your information was last reported to each bureau.

Special Notes

• Late Payments: Negative marks, such as late payments, are generally only reported if payment is at least 30 days overdue.

• Not All Issuers Report Everywhere: Some smaller issuers may not report to all three bureaus, so always check with your specific lender if you’re unsure.

By understanding when and how your credit card activity is reported to the bureaus, you can better manage your balances and maximize your credit score potential. Make it a habit to monitor your statement closing dates and plan payments accordingly for the healthiest credit profile

Actual Payment Information Suppressed

The biggest credit card companies are suppressing actual payment information on credit reports.

The CFPB reported in 2020 that the largest credit card companies are purposely suppressing customers’ actual payment amounts from their credit reports.  Actual payments are the amounts the borrower repays each month, as opposed to the minimum payments or balance. This means that millions of borrowers are missing key information of their repayment behaviors that impacts their credit. This suppression harms the opportunity to receive better financial offers and costs billions of dollars in interest expenses.

As of 2022, the CFPB reported that Americans paid over $120 billion annually in interest and fees on credit cards and since then the average interest rates charged by credit card companies have been quickly increasing.

Last May, the CFPB sent letters to the CEOs of the nation’s largest credit card companies - JPMorgan Chase, Citibank, Bank of America, Capital One, Discover, and American Express - asking if they furnished actual payment information. They asked why they stopped sending complete data and if they had plans to change their practice.

They learned that:

• One large credit card company took the move first, and the others started suppressing their data shortly after.

• The companies didn’t say when they intended to restart reporting actual repayment information.

• Companies suppress data to limit competition. By withholding information it made it harder for competitors to offer more profitable and less riskier customers better rates, products, or services.

Credit card companies are making it difficult for people to shop for credit and to save money. People expect that their credit behaviors - like paying credit card bills in full each month will be reflected in their consumer reports and credit offer they receive.

More Information from the CFPB: CFPB Summary

Buy Now, Pay Later & Credit Score

Buy now pay later options do not generally affect peoples credit and do not yet routinely appear on most credit reports. The credit bureaus; TransUnion, Equifax, and Experian are each working through this relatively new system and how to report on these services in the context of credit worthiness and a borrowers financial obligations. 

This means that a good record of payment on your buy now, pay later accounts will not help build your credit. It also won’t hurt your credit unless your account is sent to collections. This payment option is popular with younger generations, as they are least likely to have built their credit. For now, it is a good way to practice building your credit. 

How Buy Now, Pay Later Works

When you purchase something online, some stores may offer to divide your purchase into smaller installment payments. Most often into four payments, every two weeks. The most used options are Affirm, Afterpay, Klarna, Paypal, and Zip. They partner with retailers who pay them commission. 

Approval is partially based on data that includes address stability, public records and previous history you may have with the lender and banking information. 

Opportunities for Credit Building

The credit bureaus are working hard to incorporate this method into their formulas. Consumers are using these accounts online more frequently than traditional credit cards and loans, especially young consumers. This could prove to be most beneficial to build up credit. 

There are Risks

Since buy now, pay later loans are new and unregulated they are often paid late, most often by consumers of the age group 18-30. BNPY lack the typical protections you would have under a credit card such as dispute resolutions. The easy access to the application causes the consumer to impulsively purchase and buildup debt faster than they normally would. The consumer may also rack up multiple BNPL accounts on multiple sites that could potentially lead to collection accounts. Once sent to collections, it will end up on credit reports. 

The Credit Bureaus

It has been decades since a new type of credit has been in the market. The BNPY system does not fit perfectly within the two categories they have in place now: Installment loans that span months or years and revolving credit like credit cards. 

The bureaus are working together to find a format that fits and are figuring out a common ground.

Current Plans:

• Experian has announced it plans a specialty bureau to hold buy now, pay later data. Information from the specialty bureau will be “promoted” periodically into the consumer’s core credit file.
  

• Equifax plans to add the information to regular credit reports.
  

• TransUnion has said it will partition off the data on core credit reports.

Credit Bureaus Still Failing Consumers

Recently on November 10, 2021, U.S. Senators Senators Brian Schatz (D-HI), Sherrod Brown (D-OH), Ron Wyden (D-OR), Elizabeth Warren (D-MA), Jack Reed (D-RI), Chris Van Hollen (D-MD), and Ben Ray Luján (D-NM), urged the Consumer Financial Protection Bureau (CFPB), to take action to reform the credit reporting industry. 

They want the consumer reporting agencies (CRAs) to improve the accuracy of credit reports, minimize the hassle, and hold the CRAs accountable for errors. 

The smallest of errors could affect millions of people. This could prevent them from getting a job or housing at no fault of their own. These mistakes, consumers may pay more for credit and be denied loans, getting mortgage, or renting an apartment. 

A study that took pace in 2012 found that one in five consumers had an error on their credit reports and five percent had errors that were economically damaging. A followup in 2015 found that nearly 70% of the impacted consumers surveyed three years earlier continued to dispute information. 

If you need information on the disputing process or to seek legal action, contact us for help at anytime. 

What is an ACDV?

The largest search we find on our page concerns ACDV’s. So, what is an ACDV? 

An ACDV is an Automated Credit Dispute Verification form that  is used by the credit reporting agencies to communicate consumer disputes to lenders and collection agencies. 

ACDVs are transmitted to furnishers via an electronic system known as the "E-OSCAR" system, which is an automated system that enables furnishers and credit reporting agencies (CRA’s) to create and respond to consumer credit history disputes.

The ACDV process tracks and manages an ACDV initiated by a credit reporting agency on behalf of a consumer and routes it to the appropriate furnisher.

The furnisher then, returns the ACDV to the initiating CRA with the updated information (if any) relating to the consumer's credit history.

In responding to an ACDV, a furnisher informs the CRA’s if the disputed information is "Verified" or if the disputed information should be "Changed" or if the disputed item of information should be "Deleted".  To do this the furnisher literally checks a box. 

Once checked, this will instruct the CRA that all information about the disputed tradeline is, in fact, accurate and that no changes should be made. If a furnisher chooses to change information, it will check a box called "Change Data As Shown" and then will input changes into the various fields of information that need to be changed. Whenever a furnisher directs a CRA to change information on a consumer’s credit file, that furnisher affirms to the CRA that it has made the same changes to its own systems.  This affirmation is made by the furnisher on the form used to process the dispute. 

Problems persist with Credit Bureaus

Problems persist with Credit Bureaus

Have you experienced issues with credit bureau’s? It seems to be a running theme. The three major credit-reporting bureau’s – Equifax, Experian, and TransUnion, have had the most complaints for four consecutive years. These complaints involve inaccurate information on credit reports. Fighting with these bureaus can be a hassle because the bureaus have more power than the consumer.

            Lawmakers have only begun to pay attention since the enormous data breach from Equifax just two years ago. This led to being able to freeze your reports for no fee but didn’t provide any new ways to protect the consumer. There have been a few reforms in the past few years, such as bureaus being required to inform the other bureaus when a credit file is found to be mixed with another person and that a report can no longer include debts outside of an agreement or contract. For example, The reports are not allowed to include medical records that are 180 days old or less or medical debts that have been paid by an insurer.

            Problems have been persistent, and it seems that reform is not happening fast enough. The disputes are converted into codes that summarize the complaints for the data furnishers, which can be thought of as computers talking to computers. This can be frustrating when you have a dispute that is more complex and you need to talk to a real person.

            During the data breach of 2017, Equifax had a settlement of $700 million, which is comparable to a parking ticket in their eyes. It is just the cost of doing business and easier than changing their business practices to be fair and partial to consumers. It is imperative as a consumer to check your credit report regularly, or you may find yourself unexpectedly rejected for credit when it is most crucial. annualcreditreport.com is a site where you can check your credit report for free annually. As a consumer, it is your job to identify that your accounts are in good standing and have all the correct information. If your personal information is wrong, it could potentially be a mixed file or identity theft. It isn’t uncommon for a credit file to be mixed with someone who has similarities to your identifying information. It is most likely to happen if you have a common first and last name or if you have a family member with a similar or the same name. Credit bureaus may even consider only 7 of the 9 digits of your social security number when matching your information. You have the right to dispute these errors and have them corrected and/or deleted. An error in your file could prevent you from getting credit, renting a home, or getting a job.

            If you come across an error, you should take action from both sides. You should contact the furnisher that provided data to the bureaus and to contact the bureau(s) reporting the error. It may even be best to write a formal letter by mail so that a person and not a computer will receive the information. It also provides you with a paper trail if you were to make a claim.  Being persistent is key, it is not easy to get a furnisher to immediately admit their wrongs. Filing a dispute with the credit bureaus as you communicate with the furnisher will help preserve your right to make a legal claim if the error fails to be corrected. You can find dispute information and mailing addresses through these links: equifax.com/disputes, experian.com/disputes and transunion.com/disputes Contact us today with any questions you may have regarding your credit report.