How to remove the closed account from your credit report

There are a few reasons why you would want to have a closed account removed from your credit report. Maybe you closed the account because you were dissatisfied with the company’s customer service. Or perhaps you locked it because you wanted to consolidate your debt and thought it would be best to close some of your accounts. Whatever the reason, if you have a closed account on your credit report, it is possible to have it removed. Here’s how.

The first thing you need to do is get in touch with the credit reporting agency that is reporting the closed account. You can find out which agency is reporting the account by ordering a copy of your credit report from annualcreditreport.com.

Once you have your information, look for the section that lists your closed accounts. Next to each closed account, there will be a three-letter code that indicates which credit reporting agency is reporting the account. For example, if the code for one of your closed accounts is “EQU,” Equifax reports the account.

Once you know which agency is reporting the closed account, you will need to contact that agency and explain why you believe the account should be removed from your report. The credit reporting agency may require you to provide additional documentation, such as proof that you paid off the balance on the account before closing it. Once the credit reporting agency has all the information it needs, it will investigate your claim and decide whether to remove the closed account from your report.

What is a Closed Account?

A closed account is an account that the creditor has shut down. It can happen for several reasons, such as if you miss too many payments or exceed your credit limit. Once an account is closed, it will stay on your credit report for up to 10 years.

How Does a Closed Account Affect My Score?

Removing a closed account from your credit report will not immediately improve your credit score. However, over time, as the account ages and as you continue to build a positive history of financial responsibility, your score will gradually improve. In the meantime, there are other things you can do to help improve your score more quickly.

How Do I Remove a Closed Account From My Report?

If you have a closed account on your credit report that you would like removed, disputing the entry with the credit bureaus is the best way to do this. You can typically do this online or over the phone, if you choose to do this yourself, we can also help you do this so you can save time. Draft a letter to the credit bureau requesting that they remove the closed account from your report. In this letter, include:

1) Your full name.

2) Address.

3) Date of birth.

4) Social Security number.

5) A copy of your driver’s license or passport

State why you are writing—to request that the closed account be removed from your report. Explain that you are entitled to accurate information on your report and that keeping this old account on your report prevents you from obtaining new lines of credit or getting favorable terms on loans. 

You should receive a response from the credit bureau within 30 days letting you know whether or not they have granted your request. If they do not respond within 30 days or if they deny your request, follow up with another letter or call them to find out why.

It’s not difficult to remove a closed account from your credit report—but it is essential if that account is dragging down your score. Just remember to dispute any errors with the credit bureau first, and then follow these steps to write a letter requesting the removal of the closed entry. With any luck, you should see an uptick in your score within 30 days!

Keep in mind, though, that even if you are successful in having the closed account removed from your report, it will not necessarily improve your credit score. That’s because when an account is reported as “closed,” it does not mean that its history is no longer factored into your score. Instead, it simply means that new activity on the account (such as late payments) will no longer be reported.

So, while removing a negative mark from your credit report can undoubtedly boost your score, don’t expect miracles. Do allow us to work with you to help you challenge all negative accounts on your credit report, give us a call. Real Credit Deal is here to help.