How Long Do Closed Accounts Stay on Your Credit Report?

Credit reports record an individual’s credit history, providing lenders with insights into financial behavior and creditworthiness. They document both open and closed accounts. Closed accounts remain on a credit report for a period, influencing a consumer’s credit profile regardless of how they were managed. Understanding how these accounts are handled is important for consumers tracking their financial standing.

General Reporting Periods

The Fair Credit Reporting Act (FCRA) governs how long closed accounts remain on a credit report. For most negative information, such as late payments or defaults, the FCRA specifies a maximum reporting period of seven years. This period generally begins from the date of the first missed payment that led to the delinquency. Accounts closed in good standing, meaning they were paid as agreed, can remain on a credit report for a longer duration, typically up to 10 years from the date of closure.

Specific Account Timeframes

The specific timeframe a closed account appears on a credit report varies depending on its nature and payment history. Accounts closed in good standing, such as credit cards paid off and closed by the consumer, can remain on the credit report for up to 10 years from the date the account was closed. This presence can positively contribute to a consumer’s credit history by demonstrating consistent on-time payments and responsible credit management.

Conversely, negative closed accounts, including those with late payments, charge-offs, or collections, generally remain on a credit report for seven years. This period typically starts from the date of the original delinquency. A charge-off occurs when a creditor deems a debt uncollectible, while a collection account indicates the debt has been sold to a third-party agency.

Public record items, such as bankruptcies, also have specific reporting periods. A Chapter 7 bankruptcy, which involves liquidation of assets, can remain on a credit report for 10 years from the filing date. A Chapter 13 bankruptcy, which involves a repayment plan, typically stays on a credit report for seven years from the filing date. Foreclosures remain on credit reports for seven years from the date of the first missed payment that led to the foreclosure.

How Closed Accounts Appear

When a closed account appears on a credit report, it is clearly designated as “closed,” indicating it is no longer active for new charges or transactions. The entry typically includes details such as the date the account was opened, the date it was closed, and a comprehensive payment history.

For accounts closed in good standing, the credit report displays a history of consistent, on-time payments. This positive payment history contributes to the overall length and quality of a consumer’s credit history. In contrast, closed accounts with negative marks show notations of missed payments, late payments, or charge-offs. Even after an account is closed, any prior negative payment history remains visible and can influence credit evaluations.

Correcting Account Errors

Consumers have the right to dispute inaccurate or incomplete information on their credit report. If an error is identified on a closed account, contact the credit reporting companies (Experian, Equifax, and TransUnion) directly. Explain the error in writing, providing supporting documentation.

Credit bureaus are required to investigate the dispute, typically within 30 days of receiving the request. They will contact the original creditor or data furnisher to verify the information. If the investigation confirms an error, the credit reporting company must update or remove the inaccurate information. Consumers can also directly contact the information furnisher to dispute the error.