How Long Do Closed Accounts Stay on Your Credit Report?

Credit reports record an individual’s financial history, including borrowing and repayment activities. They track various account types, including those no longer active. A “closed account” is no longer open for new transactions, whether paid off by the consumer or closed by the creditor. Understanding how these accounts appear on a credit report is important for managing one’s financial profile.

Reporting Periods for Closed Accounts

The Fair Credit Reporting Act (FCRA) governs how long closed accounts remain on a credit report, establishing timeframes for different financial information. Accounts closed in good standing, meaning paid as agreed with no late payments, remain on a credit report for up to 7 to 10 years from the closure date. These positive entries contribute favorably to a credit history.

Conversely, negative information like late payments, accounts sent to collections, or charge-offs, remains on a credit report for about seven years. This period begins from the date of the first delinquency that led to the negative status, not from the account closure or charge-off date. For example, if a payment was first missed on January 1, 2020, the negative entry would be removed around January 1, 2027, even if the account closed later.

More severe negative events, such as bankruptcies, have specific reporting periods. A Chapter 13 bankruptcy stays on a credit report for seven years from the filing date, while a Chapter 7 bankruptcy remains for up to ten years. Satisfied judgments and paid tax liens stay on a report for seven years from their release or payment date. Unpaid judgments or tax liens remain indefinitely until satisfied, at which point the seven-year clock begins.

How Closed Accounts Appear on Credit Reports

When a credit account closes, its historical information remains displayed on a credit report, providing a record of past financial activity. The report details the account type (e.g., credit card, mortgage, auto loan) and the original creditor’s name. While the full account number is masked for security, a partial number is visible for identification.

The account’s status is indicated, showing “closed,” “paid,” or “charged off,” depending on its closure circumstances. The report includes the original open date and the specific closure date. The complete payment history for the active period is displayed, showing whether payments were made on time.

The record also includes the original loan amount or credit limit and the balance at closure. The “closed” designation means no new transactions can occur on that account, but historical data remains accessible. Accounts can be closed by the consumer or the creditor, often due to inactivity or a change in terms.

Correcting Inaccuracies on Closed Accounts

Consumers have a right to ensure the accuracy of information on their credit reports, including closed account details. Regularly review credit reports from all three major credit bureaus to identify inaccuracies. Free access to these reports is available annually.

If an inaccuracy is discovered, the consumer can dispute it directly with the credit bureau and/or the data furnisher (typically the original creditor). The dispute requires providing specific details about the error and submitting supporting documentation, such as payment records or account statements. This evidence helps substantiate the claim.

Upon receiving a dispute, credit bureaus are required to investigate the disputed information within 30 to 45 days. If the investigation confirms the information is inaccurate, incomplete, or unverifiable, the credit bureau must correct or remove the disputed entry. This process helps maintain the integrity of a consumer’s financial history.