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So credit card debt must really "Vanish" after 7 years because how was I able to

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  • #1

    So credit card debt must really "Vanish" after 7 years because how was I able to

    get another Discover Card after maxing one out in college in the 90's and never paying back the money? I mean they had to do a credit check in order for me to get the credit card so that money I owed must have disappeared.


    So it must be true that debt falls off your report after 7 years
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  • #2
    Originally posted by saver17 View Post
    So it must be true that debt falls off your report after 7 years
    Yes, negative items stay on your report for 7 years from the date of last activity. Bankruptcies stay for 10 years.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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    • #3
      Wait, so I could literally max out all of my credit cards for free as long as I could somehow guarantee I wouldn't need credit for the next 7 years?

      Something sounds off...
      -Milly
      Personal Finance Blogger, Mechanical Engineer, and Mother of 3 Toddlers
      milly.savingadvice.com

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      • #4
        Does that mean most people with 2008 credit damage are in the clear now?

        Any guesses as to what that does to the economy? Will we have a debt spike as debt gets cheaper again, or will people just be able to pay off their debt more easily?
        -Milly
        Personal Finance Blogger, Mechanical Engineer, and Mother of 3 Toddlers
        milly.savingadvice.com

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        • #5
          Originally posted by Milly View Post
          Wait, so I could literally max out all of my credit cards for free as long as I could somehow guarantee I wouldn't need credit for the next 7 years?

          Something sounds off...

          Freshman in college and didn't have any income

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          • #6
            Originally posted by saver17 View Post
            Freshman in college and didn't have any income
            Then you shouldn't have had a credit card, and the company shouldn't have approved you for one. That gets a lot of people in trouble.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

            Comment

            • #7
              Originally posted by Milly View Post
              Does that mean most people with 2008 credit damage are in the clear now?
              Yes, someone who defaulted on a debt in 2008 would no longer have that default showing on their credit report today.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment

              • #8
                Pretty much the definition of moral hazard, people know they get off scot free walking away from homes and credit card debt and they are bound to do it again.

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                • #9
                  Originally posted by disneysteve View Post
                  Then you shouldn't have had a credit card, and the company shouldn't have approved you for one. That gets a lot of people in trouble.

                  I was 18 and tricked into signing up for a credit card. They knew I had no job

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                  • #10
                    Originally posted by AJ444 View Post
                    Pretty much the definition of moral hazard, people know they get off scot free walking away from homes and credit card debt and they are bound to do it again.
                    Not me

                    I'm older and wiser

                    Comment

                    • #11
                      Originally posted by saver17 View Post
                      I was 18 and tricked into signing up for a credit card. They knew I had no job
                      You don't mean tricked literally, do you? How did that happen? Presumably, being in college, you could read and think through consequences. No one tricked you into using it after you got it, did they? How much was the debt plus interest last you were aware of it?

                      If something has dropped off your credit report, does that actually mean you do not owe it anymore? Does it just mean that the credit agency is no longer tracking it and including it in requests for your credit history?
                      "There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid

                      "It is easier to build strong children than to repair broken men." --Frederick Douglass

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                      • #12
                        Originally posted by Joan.of.the.Arch View Post
                        You don't mean tricked literally, do you? How did that happen? Presumably, being in college, you could read and think through consequences. No one tricked you into using it after you got it, did they? How much was the debt plus interest last you were aware of it?

                        If something has dropped off your credit report, does that actually mean you do not owe it anymore? Does it just mean that the credit agency is no longer tracking it and including it in requests for your credit history?

                        They were giving out bags of candy if you signed up for a card. So that's what I did and the rest is history

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                        • #13
                          Originally posted by Joan.of.the.Arch View Post
                          You don't mean tricked literally, do you? How did that happen? Presumably, being in college, you could read and think through consequences. No one tricked you into using it after you got it, did they? How much was the debt plus interest last you were aware of it?

                          If something has dropped off your credit report, does that actually mean you do not owe it anymore? Does it just mean that the credit agency is no longer tracking it and including it in requests for your credit history?
                          I believe the debt was $800 and no once it falls off your report you don't owe it anymore

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                          • #14
                            tricked with bags of candy. lol

                            now i'm imagining white vans rolling around the campuses pulling up to people "have some candy little college freshman", then yanking them in, making them sign a credit card app, then driving off.

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                            • #15
                              Originally posted by ~bs View Post
                              tricked with bags of candy. lol

                              now i'm imagining white vans rolling around the campuses pulling up to people "have some candy little college freshman", then yanking them in, making them sign a credit card app, then driving off.
                              They were at a table inside the Cafeteria Lounge and they gave you a huge bag of twizzlers or a cup to fill out an application

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