Accurate negative information generally can be reported for seven years, but there are exceptions: Bankruptcy information can be reported for 10 years; Information reported because of an application for a job with a salary of more than $20,000 has no time limitation; Information reported because of an application for more than $50,000 worth of credit or life insurance has no time limitation; Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer; and Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions. Tax liens stay on 7 years from the date PAID.

This information is reprinted with permission of Lexington Law firms When you first receive your Trans Union and Equifax credit reports, you will be totally lost. The information is coded in a way that is not immediately readable by the average consumer. Each credit report should arrive with a key that interprets the codes and indicators on the credit report. Sit down with the credit report and the key and study it until you understand what each number and code means.

It's obvious, isn't it? You haven't paid your bills. However, we get so many questions about this, that we decided to post a whole page on the subject. It's not a rule set in stone but, typically, credit card debts may be turned over to a collection agency after 180 days after the debt is owed. In the case of medical collections, some hospitals - especially for people who don't have any insurance - turn medical bills over for collections immediately.

Beginning September 30, 1997, an employer must get a job applicant's written permission before obtaining a copy of the applicant's credit report. Also, for the first time, creditors and others that furnish information to credit reporting agencies -- the companies that compile and disseminate credit information -- will have new duties under federal law to ensure the accuracy of the information they supply. Credit bureaus will have increased duties as well, especially in the way they handle disputes from consumers about information in their files. These important new consumer protections are contained in amendments to the Fair Credit Reporting Act. The amendments, passed by Congress last year and effective Sept. 30, were designed to better ensure the accuracy and privacy of the information contained in consumer or credit reports.

There are three big ones: Experian, Equifax, and Trans Union, all with national databases. There is also a fourth one, called Innovis. Most credit grantors report to one or more of them. In general, the credit reporting agencies don't pass information back and forth to each other. So you actually have at least three credit histories, not one.

You don't have a credit rating, as such. Each credit reporting agency collects information from banks, finance companies, department stores, taxing authorities, landlords, and other "credit grantors" and keeps the information in your file. The file is supposed to be an objective record of your credit history, in essence a sorted copy of information furnished to the credit reporting agency by companies you have done business with on credit.

Suppose you've just paid off a large loan and you're applying for a car loan or a mortgage. It would be nice to know that the lender who pulls your report will see that the old loan was paid off. However, credit grantors' contracts with credit reporting agencies may or may not specify a timetable for grantors to report new information to the bureau. If the credit grantors are tardy, there's not much the credit reporting agency can or will do, since those same credit grantors are also the customers of the credit reporting agency. Also, credit reporting agencies may gather information directly from public records, on any schedule they please.

When you apply for a mortgage, credit card, or other loans, the fine print on the application gives the lender permission to check your credit history. The lender usually requests a credit report from one of the big three credit reporting agencies. The credit report will contain your credit score, and unfortunately, this is what most lenders consider the most. If your score is marginal, the lender may look at your actual report in addition to the score before deciding whether to grant you the credit you seek.

This may create a problem. Actually, is may create two problems for you. Many lenders look at your total credit limit on each account to determine whether they want to give you additional credit. If you have ten Visa cards with a $5,000 limit on each, and five have a zero balance and the other five have $100 each, your actual debt is $500. But some lenders may evaluate you on the basis of $50,000 of debt because you could go out tomorrow and charge that much.

If the lender's decision was based on a report from a credit reporting agency, by law the lender must tell you this and give you the name and address of the credit reporting agency. This is true even if the credit report was only one factor in the decision.