How Long Do Closed Accounts Stay on Your Credit Report?

A credit report details an individual’s financial history, including credit accounts and payment history. A “closed account” indicates a credit line or loan that is no longer active and cannot be used for new charges. Accounts can be closed for various reasons, such as paying off a loan, closing a credit card, or a creditor closing an account.

General Timeframes for Closed Accounts

The Fair Credit Reporting Act (FCRA) governs how long closed accounts remain on a credit report. Most negative information, such as late payments or collection accounts, remains on a credit report for up to seven years. This period starts from the “date of first delinquency,” the date an account first became past due and was not subsequently brought current.

Positive account information, like accounts paid as agreed, can remain on a credit report for a longer period. Even after an account closes, its history continues to contribute to the overall credit profile. Accounts closed in good standing provide a lasting record of responsible credit management.

Specific Account Types and Their Reporting Periods

Reporting periods for closed accounts vary based on whether the information is positive or negative. Accounts closed in good standing, such as paid-off loans or credit cards with on-time payments, can remain on a credit report for up to 10 years from closure. This continued presence allows positive payment history and account longevity to benefit a consumer’s credit profile.

For negative information, the standard reporting period is seven years from the date of first delinquency. This applies to derogatory marks, including late payments, charge-offs, and collection accounts. Paying off a collection account updates its status to “paid” but does not remove it before the seven-year period ends. Bankruptcies have specific reporting durations: a Chapter 7 bankruptcy remains on a credit report for 10 years from filing, while a Chapter 13 bankruptcy stays for seven years from filing.

Influence of Closed Accounts on Your Credit Profile

Closed accounts, while present on a credit report, significantly influence an individual’s credit score and overall credit profile. Accounts closed with timely payments and responsible use contribute positively by demonstrating a long and stable credit history. Older accounts, even if closed, enhance the length of credit history, a factor in credit scoring models.

Conversely, closed accounts with negative marks, such as late payments or collection activity, negatively impact a credit score. These derogatory items weigh down the payment history, a major factor in credit score calculations. The impact of negative information diminishes over time but remains a factor until the account is removed.