Chris Torney, the personal finance editor of The Express answers this question.
Q: How long will an unpaid bad debt stay on my credit report?
A: The short answer is six years. This applies to unsecured unpaid debts such as loans and credit cards for borrowers in England and Wales – in Scotland the limit is five years.
But the debt will only be wiped from your credit file – known as being “statute barred” in England and Wales, or “extinguished” in Scotland – if you haven’t made any repayments on that debt, or admitted liability for it, within that six- (or five-) year period.
In theory, after that time has elapsed, the debt will no longer show up on your credit record, so it won’t harm your chances of borrowing.
Mortgage debts can stay on your file for longer – 12 years in England and Wales, and up to 20 years in Scotland.
Read more on how to get a better grade on your credit report.
Read our guide on how to fix a mistake on your credit file.
Remember though, each country has its own regulations regarding credit reports. It's best to consult an expert regarding matters like this. Financial matters should be handled with care, right?
Posted by: Roland Holtzen | 09/22/2011 at 08:55 PM
You have to be informed about your credit history. It matters to financial organizations.
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Posted by: debt collection services | 12/12/2011 at 01:46 AM