How Long Does a Closed Account Stay on Your Credit Report?

Credit card companies and other lenders are interested in your closed accounts as part of your credit history. In the typical course of business, lenders supply information on your spending and payments to credit reporting agencies, which summarize it all into credit reports that are used to calculate your credit score. Then, lenders refer back to these reports and scores to assess the risk of approving your application for a new credit card, or other type of loan, and to set the interest rate in line with that risk. Information from closed accounts may help lenders get deeper insight into a person’s past payment history. 

A closed account on your credit report shouldn’t worry you if the account was well-managed and in good standing at the time it was closed. Having it remain there as a positive reflection on your credit history and a track record of on-time payments generally helps your credit score. It stays on your credit report for up to 10 years.¹

However, any negative information about a closed account on your credit report could lower your score. This can be the case if you made late payments on the account, for instance, or it was referred to a debt collector.

Even if you’re closing an account that’s in good standing, though, it can temporarily increase your credit utilization rate, as described above, which counts for 30% of your credit score. There are two other possible implications of closing an account:

The good news in most of these situations is that your score should rebound in a few months as long as your payments continue on time.²

It’s not easy to get a closed account off your credit report, unless the information is inaccurate. According to the National Consumer Law Center, one error that comes up from time to time is a change in the actual age of a debt that has gone to a collection agency, or multiple reports of the same debt going to collection.³ If you find information on your report that you believe is inaccurate, you can send a letter to both your lender and to the credit reporting agency – the Consumer Financial Protection Bureau provides sample letters to help.⁴

You may also consider pursuing a “goodwill” deletion. You could send a written request to the creditor that reported the information, asking them to remove the account since it is no longer open.

However, the lender is under no obligation to do so. Additionally, credit bureaus aren’t obligated to remove closed accounts. However, it may be an option worth pursuing if you have a positive relationship with the creditor.

Sometimes, it just makes sense to close an account, even if you face a temporary dip in your credit score. Maybe closing the account will help you control spending, for example, or maybe the card or loan in question is costing you fees or interest that you’d rather not pay. Credit reporting agencies suggest taking a thoughtful approach to closing accounts. For instance, if you’re about to seek a mortgage for a new home, you might not want to close any accounts just beforehand. Canceling multiple accounts should be done in a gradual, planned fashion to avoid sending negative signals to potential lenders.

To close a credit card account, you’ll want to pay off your account balance, redeem or transfer any rewards, and contact your card issuer’s customer service department to request account closure – either by phone or in writing – rather than simply cutting your card in half. Usually, you should receive a confirmation letter in about 10 days.⁵ To close a loan account, all you have to do is pay off the loan in full. Your lender will generally contact you via mail or email to confirm the loan has been paid off.