Candace Begody was an Associate Attorney at Lexington Law. Ms. Begody was born and raised in Arizona. She earned her juris doctor from Arizona State University's Sandra Day O'Connor College of Law and her master's in business from the W.P. Carey School of Business, also at ASU. Ms. Begody joined Lexington Law in 2022. Prior to that, she worked in transactional and business law in the Phoenix area. Ms. Begody is licensed to practice law in Arizona and was located in the Phoenix office.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Closed accounts can be removed from your credit report in three main ways: (1) dispute any inaccuracies, (2) write a formal goodwill letter requesting removal or (3) simply wait for the closed accounts to be removed over time. That said, removing closed accounts can affect your credit score, so make sure you consider your situation before taking any action.
It’s not always possible to remove a closed account from your credit report, but you can attempt to do so if you would like. However, it’s not always beneficial to remove closed accounts, and in some cases, it could even lower your credit score.
In general, you should try to remove any closed accounts with inaccurate negative information, but you probably shouldn’t touch any accounts that are having a positive effect on your credit history.
Below, we’ll talk about whether you should try to remove closed accounts from your credit report, how closed accounts may affect your credit score and how to remove closed accounts.
As we mentioned, you can attempt to remove closed accounts from your credit report by disputing inaccurate information with the credit bureaus, writing a formal “goodwill letter” to request removal or simply waiting until the account is removed after a period of time.
Read on to learn more about when to try each of these different methods for getting a closed account off your credit report.
If a closed account on your credit report includes inaccurate information, you can dispute the information and potentially get the item removed from your report.
How to dispute inaccurate information:
We have a guide that details the dispute process to help you along the way.
A goodwill letter is a formal request to a creditor asking for a negative item to be removed.
Although creditors are not required to remove negative items upon request, they may be willing to do so if you have a long history with them or if there were special hardships that led to the negative item.
However, goodwill letters are generally useful only for late or missed payments rather than more significant negative items like collection accounts and repossessions.
In addition to goodwill letters, you can also request that an account is removed using a pay for delete letter. These letters can lead to an agreement with a collection agency to remove an account in exchange for a partial or full payment. That said, the collection agency may decide not to remove the account, and the original account that went to collections may remain on your report.
No items stay on your report forever, so it’s possible to simply wait for a closed account to be removed on its own. Items on credit reports, including accounts that have been closed, can remain on a credit report for around seven to 10 years.
So if you’re worried about an older closed account with negative information that is potentially lowering your score, know that eventually it will drop off your credit report. Positive information about closed accounts also leaves your report after enough years have passed, so it’s important to continue to practice good credit habits with a variety of account types.
You should attempt to remove closed accounts that contain inaccurate information or negative items that are eligible for removal. Otherwise, there is generally no need to remove closed accounts from your credit report. Inaccurate information could be hurting your credit score and should be addressed, but older accounts that show responsible credit usage may be helping your score.
Even after closing an account—like a personal loan or credit card—the information related to your balances and payment history stays on your credit report for many years. Accounts closed in good standing may stay on your report for up to 10 years, while accounts with derogatory marks, like collection accounts, may remain on your credit report for up to seven years.
Deciding whether to try to remove a closed account ultimately comes down to understanding the factors that affect your credit.
Your FICO credit score is calculated based on five main factors:
Because a credit report includes both open and closed accounts, some of these credit factors can be affected by a closed account leaving your report. For example, if you made payments on a personal loan for a number of years and that account is no longer on your report, yourlength of credit history could decrease, which could negatively affect your credit.
Having a closed account removed from your report may not affect your score, but in many cases, it is wise to leave accounts in good standing on your report, as they could have a positive impact overall.
However, closed accounts with negative items eligible for removal and inaccurate information can lead to a lower score, so working to get those accounts removed is part of a sound credit repair strategy.
Still unsure about how to remove a closed account from your credit report? Here are a few commonly asked questions and answers.
You should try to remove closed accounts that have inaccurate or negative items, but leave accounts that are having a positive effect on your credit history. Accounts with inaccurate information could lower your credit score.
Closed accounts can stay on your credit report for seven to 10 years, depending on the status of the account.
All closed accounts stay on your credit report for many years depending on their positive or negative history, unless you take steps like sending goodwill letters or disputing inaccurate or unfair information to try to get the closed accounts removed sooner.
If your credit report contains closed accounts with inaccurate negative items, the team at Lexington Law Firm can assist you with credit repair. By analyzing your credit report and assisting with disputes, our team could help you make strides in improving your credit.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
