Home ยป How long does it take for closed accounts to be removed from credit report?

How long does it take for closed accounts to be removed from credit report?

Answer

Accounts in good standing will remain on your credit report for up to 10 years, while accounts with adverse information may stay on your credit report for up to seven years.

Closed accounts remain on your credit report for seven years from the date of closure. There are some exceptions. Account information remains on your TransUnion Credit Report even after you have paid off the account in full or otherwise settled it with the creditor if we were involved in the collection process and a new 30-day late becomes part of your file during that time period. Federal student loans, vehicle installment loans and revolving bank accounts will also be reported until legally discharged.

Please note: If an account is closed by one company (for example, a department store) and then re-opened by an affiliated company (like a furniture rental company), both accounts will appear on your credit report as separate inquiries. However, the second account may not appear as a new inquiry until the account is at least 30 days past due.

If you are genuinely concerned about your credit report, feel free to check it once every 4 months using AnnualCreditReport.com and dispute any inaccurate information with the bureau before it becomes permanent on your record. Creditors who request reports directly from TransUnion will receive a report which includes ALL accounts in good standing (which may include closed accounts), but if you review your own credit report directly through AnnualCreditReport.com, you can see only those accounts that appear in public records like court filings or property liens. Federal law also protects your right to have such material removed from your credit file, if it is factually incorrect and prejudicial.


If you are concerned about the amount of time that a derogatory event is reported on your credit history, you can place a 90-day fraud alert or file an identity theft report with the FTC. A fraud alert can help prevent creditors from opening new accounts without further review to verify their legitimacy. If you believe there has been an unauthorized disclosure of your personal information (credit card numbers, bank account numbers, social security number), contact the Federal Trade Commission Identity Theft Hotline at 1-877-438-4338 or visit www.ftc.gov/idtheft for more information on how to protect yourself from identity theft. Report your identity theft issues directly to both our internal Fraud Resolution Department as well as to your local law enforcement agency.

For more information, see our identity theft recovery guide: http://www.transunion.com/personal/credit-education/identity-theft/pages/identity-theft-recovery-guide.aspx .

Here is a good example of how it works on the Credit Karma credit report:

If you would like to ask a question about your credit or have someone from TransUnion respond directly, please send me an email at [email protected] and I will try to pass it along! (Note: Dana and CharityWheels are two separate entities.)[/ARTICLE END] Below is another way this article could have been worded:

“How long does it take for accounts to fall off your credit report?

Accounts remain on your credit report for seven years from the date of closure. There are some exceptions. If you have a debt that was paid in full, or if you settled your account with collateral (like filing bankruptcy), then these and other actions may impact how long they will show up on your credit report: Federal student loans, vehicle loan installment accounts, revolving bank accounts, sustained 30 day late payments and unpaid collection items all remain on a credit report until legally discharged according to federal law.

If an account is closed by one creditor and reopened by another affiliated company, both companies can see the same exact information when checking your credit report (for example, a department store closing and reopening an account with a furniture rental company).

If you are genuinely concerned about your credit report, feel free to check it once every 4 months using AnnualCreditReport.com and dispute any inaccurate information with the bureau before it becomes permanent on your record. Creditors who request reports directly from TransUnion will receive a report which includes ALL accounts in good standing (which may include closed accounts), but if you review your own credit report directly through AnnualCreditReport.com, you can see only those accounts that appear in public records like court filings or property liens.” At TransUnion we believe consumers should be given financial information so they can make educated decisions about their personal finances. We have every right to expect that consumers will take responsibility for trusting the source of information. We have every right to expect that consumers will not make decisions based on incomplete or incorrect information. We have every right to expect that consumers will contact us if they need clarification, so we can help them understand what their credit profile means and how it may affect them in making a purchase or applying for new credit. When I read comments on blogs like this one, it makes me sad to see that many people feel entitled to more than is reasonable, just because they want it-as-simple-as-possible.

Does anyone really believe that it’s fair for someone who has never missed a payment on their car loan – which is reported as paid as agreed, and has never been in default or late on any payment, to be penalized for having a loan that’s on time since 2006?

Does anyone really believe that it’s fair for someone who had an account sent to collections because of hospital bills not being paid (and NOT paying required down payments) should not have their FICO score impacted? If they were living in a state without medical bill protections, do you think they would want help from the credit bureaus when writing letters on their behalf to dispute the debt? So why should we expect them to help us proactively get better scores with our cars if we don’t tell them anything needs fixed? Just because they’re “reported as paid” doesn’t mean there are no issues with the account. I’ve seen countless credit reports that say “Paid as agreed”, yet the payment history shows one late payment after another, for months and even years. Years later, it’s reported correctly because a creditor actually showed up at court to collect on behalf of their client.

Does anyone really believe that creditors are going to work harder to help consumers understand how their credit scores affect them (and market themselves better) if we expect them to do all the work? Creditors don’t care about educating consumers about FICO scores – they only care about selling more loans by offering lower interest rates based on what is known as “consideration”. Their entire business model is based on making money off loans you want and need versus loans you have to take out.

The only way for creditors to make more money off of a loan is to sell more loans – which requires marketing, customer relationship management and retention. I don’t know about you, but when I want to buy something at a department store (or any business), it’s their job to ask me questions they think will help them understand what I’m looking for so that they can recommend products based on my needs. It’s also their job to show me how what they’re offering is going to benefit me and why I should give them my money in exchange for their product or service. If we expect institutions like TransUnion or Experian or VantageScore Solutions Group or FICO themselves not do the work necessary to help us understand how we’re being judged, then I think it’s only fair for creditors to do the same. Does anyone really believe that if VantageScore or FICO hadn’t improved their scoring models and released public statements about them, that creditors would have embraced them with open arms? The sad truth is: No!

If you feel like your credit scores are so out of whack when compared to what others tell you, you can always get a free annual credit report from each bureau (TransUnion, Experian & Equifax). You have no obligation to purchase anything. If there was ever something inaccurate on your report – which the Consumer Financial Protection Bureau says they need proof AND documentation – the bureau can investigate potential errors by filing a dispute. If you don’t find anything wrong with your credit report, then it’s like a free gift card or coupon that you have to spend over the next twelve months ;). You can also purchase your credit score from each bureau (if they are available), but I’ve never seen anything from Experian before – just TransUnion & Equifax (I’m not sure if this has changed in recent years since I don’t check them as often as others). The question is: Should you pay for what you get for free?

One other thing that needs to be mentioned about FICO scores and VantageScores is that your “score” is only based on information reported through the consumer reporting agencies (“CRAs”). Your actual FICO score is based on what was reported to CRAs. If you take a look at the FICO scores in our calculator homepage, we have one for people with thin credit files (13 months or less) which tells you exactly how important it is for people with limited credit histories to start building up their crredit profiles by applying for new loans and making payments on time.

How long does it take for closed accounts to be removed from credit report?

Accounts in good standing will remain on your credit report for up to 10 years, while accounts with adverse information may stay on your credit report for up to seven years.

Can I have closed accounts removed from my credit report?

If you have a closed account on your credit report and would like to remove it, here is how: you can contact the credit bureaus to ask for inaccurate information to be removed, speak with the creditor about deleting the faulty account or wait until it disappears from your report naturally.

Is it true that after 7 years your credit is clear?

Negative information on your credit report generally stays there for 7 years. Bankruptcy can stay for up to 10 years, depending on the type of bankruptcy. Closed accounts paid as agreed can stay there for up to 10 years.

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