When you want to repair your credit, it is important to have all credit history that is past the statute of limitations removed from your credit report. By removing negative history, you can help to increase your consumer rating. The statute of limitations is different for debt than it is for bankruptcy, the latter of which may be on your record for a much longer period of time. Although creditors may still try to collect on a past debt, the debt can no longer show up on your credit report or negatively impact your credit rating once the statute of limitations has passed.
Debts
Debts can remain a part of your credit history for seven years. This seven years does not start until six months after you made your last payment on that debt. To help repair your credit, you can have this debt removed from your history after the seven and a half total amount of time has passed so that it no longer affects your credit rating. However, it is important to note that if you make any type of payment on this debt, the time frame starts all over again from the date that payment is received.
Collections
Although a debt may no longer be on record as a part of your credit report after the statute of limitations has passed, you still legally owe on the debt. If another collections agency purchases this debt and contacts you regarding payment arrangements, they may still try to collect on the money that is owed. You may choose to pay off this debt, but once you make a payment, it becomes a part of your record once again.
Bankruptcy
Bankruptcy is one decision that can negatively impact your credit for a very long time. It is best to avoid this situation if you can. A bankruptcy can remain on your credit report for a period of 10 years. This can make it hard when you are trying to repair your credit or when you try to get a new line of credit in the future.