Real Estate Community Forum

I've heard of people who say if you messed up your credit over 7 years ago, it will have no affect on your credit score. Is this correct? It's been several years since I made any payment on a few of my outstanding bills. No one is asking for money from these old bills. I'm wondering if it's because they are just too old to collect any money from them. It's been about 9 years since I made a payment. Is it possible that I am no longer responsible for making any payments? Will this have an impact on my credit score?

According to my understanding, the statue of limitations allows loan processors to only look at the most recent credit history, which means they can only look up to 7 years of your most recent credit history. Anything more than 7 years is irrelevant to your ability to be approved or disapproved for a loan. In reality, it would not be fair if they were allowed to check your credit history from the time you were a young kid who didn't understand responsibility. Hense, 7 years is a sufficient amount of time to get a good indication if you are a high risk or low risk candidate. You just never know when you are going to need credit so it is best to always pay your bills on time.