Removing a Closed Account From Your Credit Report

A woman cuts up a credit card
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Many people close accounts they no longer want under the misconception that closing the account will remove it from their credit reports. Your credit report contains a history of your credit accounts, both open and closed, so closing an account won't erase it from your credit records.

When you close an account, your credit report is simply updated to show that the account has been closed. If you're still making payments on a balance, your monthly payment history will also continue to be updated each month to reflect the timeliness of your payments.

Is it Close to Falling Off?

Closed accounts won't appear on your credit report forever. Depending on the age of the account, it may be close to dropping off your credit report for good. If that's the case, all you have to do is wait a few months for your credit report to update.

Most negative information can only be listed on your credit report for seven years. If the closed account includes negative information that's older than seven years, you can use the credit report dispute process to remove the account from your credit report.

There is no law requiring credit bureaus to remove an accurately reported, verifiable closed account if it doesn't contain any old, negative information. Instead, the account will likely remain on your credit report for ten years or whatever time period the credit bureau has set for reporting closed accounts.

Removing a Closed Account From Your Credit Report

In some cases, a closed account can work against you, especially if the account was closed with a delinquency and reflects negatively on your credit report.

If you could remove the account from your credit report, your credit history would look much better.

Unfortunately, removing a closed account from your credit report isn't very easy. You can only remove a closed account from your credit report in certain situations.

If the account is actually open but incorrectly reported as closed, you can use the credit report dispute process to have it listed as an open account.

Having it reported as closed (when it's actually open) could be hurting your credit score, especially if the credit card has a balance. You can dispute any other inaccurate information regarding the closed account, like payments that were reported as late that were actually paid on time.

You can use a goodwill letter to request a creditor remove a closed, paid account from your credit report. Creditors don't have to give in to your request, no matter how nicely you ask, but you may get lucky and find a creditor who's sympathetic to your request.

For accounts with balances, a pay for delete is a strategy that can help you remove a closed account from your credit report. The pay for delete letter offers payment of the account in exchange for removing it from your credit report. Again, creditors don't have to comply, but occasionally some creditors and debt collectors agree to the arrangement.