Identification

• The inclusion of information in your credit report is governed by the Fair Credit Reporting Act. In general, negative accounts remain on the report for up to seven years. Chapter 7, 11 and non-discharged or dismissed Chapter 12 and 13 bankruptcy remain for up to 10 years. Discharged Chapter 12 and 13 bankruptcy will remain for seven years. In the state of New York, paid judgments and collection accounts appear on the report for up to five years. An unpaid tax lien will remain indefinitely except in California, where it remains on the report for up to 10 years.
  
  

Significance

• The Fair Credit Reporting Act (FCRA) gives consumers the right to repair mistakes on a credit report. If you have inaccuracies, errors or outdated information on your report, the law allows you to dispute those mistakes with the credit bureau. Disputes are filed online at the bureau's website. You can also file a dispute by mail or phone using the toll-free number and mailing address located on your credit report. Under the FCRA, the bureau has up to 30 days to make changes.
  
  

Consideration

• You will need a current copy of your credit report to file a dispute. Fortunately, you may not have to pay for it. Under the Fair and Accurate Credit Transactions Act, you can receive one free report every year from the three main bureaus: TransUnion, Experian and Equifax. You can order the free report from AnnualCreditReport.com. In addition, you can order your report by phone or mail. The phone number and mailing address are listed on the Annual Credit Report site.
  
  

Warning

• Be sure to avoid rip-offs when it comes to credit repair. Some companies advertise that they can remove items from your report for a fee. This may be a scam, according to the Federal Trade Commission. These companies oftentimes cannot have items removed from your report. Credit bureaus do not have to remove negative accounts from a credit report that are accurate and fall within the applicable statute of limitations under the Fair Credit Reporting Act. Remember that the FCRA allows you to correct mistakes on your report yourself for free.