How to Remove Closed Accounts from Your Credit Report
Closed accounts can stick around on your credit report for years, even if they’ve been paid off. That can be frustrating—especially if they’re dragging your credit score down. Whether it’s an old credit card with late payments, a collection that’s long since been resolved, or a loan that’s no longer active, there are ways to remove closed accounts in some cases.
Here’s what to know about which accounts are worth removing, how it affects your credit score, and what steps to take next.
Should You Try to Remove Closed Accounts from Your Credit Report?
Not every closed account is a problem. In fact, some may be helping your credit score by showing a long history of on-time payments. But others—especially those with missed payments or charge-offs—can weigh you down for years. The first step is figuring out which ones are hurting you and which are helping.
When Closed Accounts Hurt Your Credit
Some closed accounts can lower your credit score, especially if they have negative marks. Here’s when a closed account might be doing more harm than good:
- Late payments, charge-offs, or collections: These can damage your payment history, which makes up 35% of your FICO credit score.
- Negative history sticks around for up to 7 years: Just because an account is closed doesn’t mean the negative details disappear.
- Both FICO and VantageScore factor in closed accounts: As long as the closed account is on your credit report, it’s included in your credit score calculations.
When Closed Accounts Help Your Credit
Not all closed accounts are bad. In some cases, they actually improve your credit score. Here’s when you might want to leave them alone:
- Paid-off loans with a clean history: These show that you’ve successfully managed and repaid debt, which is a good signal to lenders.
- Old accounts improve your credit age: A longer credit history is generally better for your credit score.
- Removing positive accounts can backfire: If the account is helping more than it’s hurting, taking it off could cause your credit score to drop.
Quick Table – Should You Remove It or Not?
| Type of Closed Account | Is It Negative? | Remove It? | Notes |
|---|---|---|---|
| Paid-off loan (no lates) | No | No | May help credit age |
| Credit card with lates | Yes | Yes | Especially if recent |
| Charged-off account | Yes | Yes | Use dispute or goodwill request |
| Settled collection | Yes | Maybe | Depends on age and status |
| Closed by issuer (no lates) | No | No | Often neutral or slightly helpful |
Negotiate a Pay-for-Delete (For Negative Accounts Only)
If you’re dealing with an unpaid collection or a charged-off account, a pay-for-delete agreement might be an option. This is when the creditor or debt collector agrees to remove the account from your credit report in exchange for payment.
It’s important to get the agreement in writing before you pay anything. A simple statement like “We will delete this account from all credit bureaus once payment of $X is received” can protect you if the company doesn’t follow through.
This approach doesn’t always work—many large lenders refuse to do it—but some third-party collection agencies are open to it, especially if the debt is older or for a smaller amount.
What to Expect After You Remove a Closed Account
Getting a closed account removed isn’t always instant. How long it takes depends on the method you use and whether the creditor or credit bureau responds on time.
How Long It Takes
- Disputes: Credit bureaus typically complete investigations within 30 to 45 days.
- Goodwill letters: If the creditor responds, it usually happens within 2 to 6 weeks.
- Pay-for-delete agreements: These often take effect after your payment clears, but it could be a few weeks before the credit report updates.
How It Affects Your Credit Score
- If a negative account is removed: You might see a noticeable increase in your credit score—especially if the account had recent missed payments.
- If a positive account is removed: You could see a small drop, especially if the account was old and helped your credit age or payment history.
Keep in mind, changes don’t always happen overnight. It may take a full billing cycle or more for updates to show up on your credit report.
Common Mistakes to Avoid
Some actions can hurt more than help. Here’s what to watch out for:
- Removing positive accounts that help your credit: If the account shows a strong payment history, you’re better off keeping it.
- Disputing accurate information: If the details are correct, your dispute will likely be denied—and repeated disputes could flag your account.
- Not checking all three credit bureaus: Just because an account is gone from one doesn’t mean it’s removed from the others.
- Falling for credit repair scams: No one can guarantee deletions. Be cautious of companies that make promises they can’t legally keep.
Final Thoughts
If a closed account is dragging your credit score down because of missed payments or charge-offs, it’s usually worth trying to get it removed. But if the account is paid off, shows consistent on-time payments, or helps your credit age, it’s often better to leave it alone.
Make sure you know what kind of impact each account is having before you act—and only go after the ones that are clearly doing more harm than good.
Frequently Asked Questions
Can I Remove Closed Accounts That Are Accurate?
In most cases, no. If the account is reporting correctly, the credit bureau isn’t required to delete it. Your best shot is a goodwill request or early exclusion if the account is near the 7-year mark.
How Long Do Closed Accounts Stay on Your Credit Report?
- Positive closed accounts: Up to 10 years from the date they were closed.
- Negative closed accounts: Typically 7 years from the date of the first missed payment that led to the closure.
Can a Credit Repair Company Remove Closed Accounts?
Reputable credit repair companies can help you dispute incorrect items or guide you through the goodwill process. But they can’t force the credit bureaus or creditors to remove accurate, negative information unless the original lender agrees.
