Even after closing a credit account, it will still appear on your credit report. While it is not always possible, there might be ways to remove a closed account from your report. However, it might not always be the best thing to do. Remember, the credit bureaus determine credit scores through various factors. Therefore, removing a closed account may negatively affect your score. Before removing a closed account from your credit report, consult the attorneys at McCarthy Law.
Should I Remove a Closed Account from My Credit Report?
While you should attempt to remove closed accounts that contain incorrect information or negative items, there is generally no need to remove a closed account. Ultimately, deciding whether to remove a closed account comes down to knowing what factors affect your credit score. For example, you should try and remove accounts that are negative, inaccurate, or fraudulent. Conversely, you may leave accounts in good standing, helpful for credit utilization, or beneficial to credit history.
Remember, the credit bureaus determine your credit score on payment history, credit utilization, length of credit history, types of credit, and new credit. Because credit reports include both open and closed accounts, removing an account from your report may negatively impact your score. For example, your length of credit history may decrease if you remove a personal loan that you paid on time for multiple years.
3 Ways to Remove a Closed Account from Credit Reports
If you want to remove a closed account from your credit report, there are three main ways to accomplish your task. You can dispute inaccurate information with the credit bureaus, write a goodwill letter, or wait until the account is removed on its own.
Dispute Inaccurate Information
If a closed account on your credit report contains inaccurate information, you should dispute the information with the credit bureaus. You can dispute the information by sending a letter to the three major credit bureaus that explains what information you are disputing, why you believe it is inaccurate, evidence proving it is inaccurate, and why you would like it removed. Additionally, you should send a letter to the financial institution that provided the information to the credit bureaus.
It might take weeks or months to hear back. If you do not receive a response or notice an increase in your credit score, follow up with the credit bureaus to ensure they received your letter.
Write a Goodwill Letter
A goodwill letter is a formal request asking a creditor to remove a negative item from your report. While there is no guarantee that the letter will work, at worst, they deny your request. At best, they might remove a negative item. Furthermore, a creditor may be more willing to comply with your request if you have a long credit history with them.
Wait for the Closed Account to Be Removed Over Time
Closed accounts do not stay on your credit report forever, so you may simply wait it out. Accounts typically leave your credit report seven to 10 years after you close them. For example, an account with negative information that’s lowering your credit score will eventually drop off your report. However, closed accounts that carry positive information will also leave your report over time. Therefore, you must continue to practice good credit habits with a variety of account types.
Contact the Debt Attorneys at McCarthy Law Today
If your credit report contains errors or negative items, contact the attorneys at McCarthy Law. We can assist you through credit repair by analyzing your credit report and assisting with disputes. You can be confident that our skilled attorneys will do everything possible to reach a favorable outcome. To learn more about how we can help you, schedule a free consultation by calling (855) 976-5777 or completing our online contact form.