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Why Late Payments Haunt You For 7 Years


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Did you ever wonder why a negative item has to stay on your credit report for 7 years. This question has been circulated for many years and no one was able to give an answer other than that is what is stated in the Fair Credit Reporting Act (FCRA). I always wondered what the answer was myself but was never satisfied just knowing that someone just decided to use the magic number 7.

Well upon research I think I found out why creditors, banks and other companies you do business with keep an item an your credit report for 7 years. Taken from the bible:

[ The Year for Canceling Debts ] At the end of every seven years you must cancel debts.

Deuteronomy 15:1 (This law was put into effect to help the poor)
This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the LORD's time for canceling debts has been proclaimed.

Deuteronomy 15:2
In the year of our forefathers, company principles were based on biblical principles. The lobbies of all government buildings and commercial building have either a biblical symbol of biblical quotes throughout the buildings.

The Bible specifically states that people are expected to pay their debts. Religion has played an important role in the history of the United States. Many of the original immigrants that arrived in America came searching for religious freedom and many of the immigrants today come to America for the very same reason.

The Declaration of Independence states that certain unalienable human rights originate from God. The First Amendment protects the freedom of religious expression for every American and established the separation of church and state. Since the founding of America, religious institutions have been at the forefront of many political movements. Religious groups fashioned and sustained movements to promote women's rights, the abolition of slavery, prison reform, protections for workers, alcohol prohibition, civil rights, and international peace. However today we see many people fighting against the views and laws put in place by our forefathers that founded this great nation.

So the next time a creditor tells you that a late payment has to remain on your credit report for 7 years you will know how they derived at that number.

She is a personal finance expert and the author of, “How to Get Out of Debt: Get an “A" Credit Rating for Free Using the System I’ve Used Successfully with Thousands of Clients.

Harrine Freeman is the CEO of H. E. Freeman Enterprises, a credit repair and personal finance services company. She is a member of the American Association of Daily Money Managers, SPAWN, Toastmasters, NAWW and the Women Network.

For more information on how to get out of debt or to buy her book please visit She can be reached via email at


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