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Under the Fair Credit Reporting Act, negative credit information older than how many years cannot be reported?

  1. 5

  2. 10

  3. 15

  4. 7

The correct answer is: 7

Under the Fair Credit Reporting Act (FCRA), negative credit information is allowed to be reported for a specific duration to protect consumers from outdated and potentially misleading information impacting their creditworthiness. The correct duration is seven years. This period ensures that consumers have an opportunity to rebuild their credit after experiencing financial difficulties without being unduly hindered by past negative events. This seven-year rule applies to most negative information, including late payments and defaults. After this time frame, lenders and credit reporting agencies are prohibited from including this negative information in consumer credit reports, which helps facilitate a fresh start for individuals looking to improve their financial standing. Other durations listed are not correct because they do not align with the specific regulations established in the FCRA regarding how long negative credit information can influence a consumer's credit report.