Legal Question in Credit and Debt Law in North Carolina

This makes no sense. Negative information can stay on a credit report for 7 years after charge-off or when the debt is first sent for collection. It is about 7 1/2 years after the date of last payment.

However, once a debt, always a debt. You only have a legal obligation to pay a debt for whatever period of time the statute of limitations is in effect. As I said, correct but derogatory information can remain on your credit report for about 7 1/2 years, Debt collectors can demand payment after that date as the debt never ever truly goes away. However, you no longer have a legal duty to pay the debt after the statute of limitations expires.

If the debt is still on your credit, some lenders refuse to issue new credit even though the statute of limitations has expired. You are not getting a car the right way. First you need t clean up your credit. Second, never rely on a dealer for financing. It is better to pay for a car in cash or else try and get a lower cost loan through a credit union. Never buy more car than you can afford or take out a car loan for years on end. It means you are buying too much car or paying too much (either you have bad credit or are roolling in the unpaid loan from a prior car).