How to Remove a Closed Account From Your Credit Report

Closed accounts can stick around on your credit report for up to a decade—and sometimes they drag your credit score down with them. If you’re applying for a loan or trying to rebuild your credit, an old account with late payments or collections could be doing more harm than good.

But not every closed account is a problem. Some can actually help your credit by boosting your credit history or mix. This guide breaks down when it makes sense to remove a closed account—and exactly how to do it if you decide it’s worth it.

How Closed Accounts Can Help or Hurt Your Credit Score

A closed account is any credit account that has been shut down, either by you or the lender. This includes credit cards, auto loans, student loans, and personal loans. Closed accounts stay on your credit report for years and can affect your credit score in different ways depending on how the account was handled.

Credit cards and other revolving accounts can influence your credit utilization ratio even after they’re closed. Installment loans like auto loans or student loans have less impact once paid off, but they still affect your credit history and mix.

Positive Closed Accounts

If the account was in good standing with no missed payments, it can help your credit score by contributing to your length of credit history. It also shows lenders that you successfully managed debt from start to finish. These accounts often support your credit score, especially if you don’t have many open accounts or a long credit history.

Negative Closed Accounts

A closed account with late payments, charge-offs, or collections can hurt your credit score. Even after the account is closed, negative marks stay on your credit report for years and signal risk to future lenders. These accounts can drag down your credit score, especially if the issues were recent.

Should you remove a closed account from your credit report?

Not every closed account needs to be removed. If the account was paid on time and closed in good standing, it’s usually best to leave it on your credit report. These accounts can help your credit history and support a higher credit score over time.

But if a closed account shows missed payments, a charge-off, or was sent to collections, removing it may help your credit. Before taking action, look at the age of the account and whether removing it might shorten your credit history. The best move depends on whether the account is helping or hurting your overall profile.

Steps to Remove a Closed Account From Your Credit Report

If you’ve decided a closed account is hurting your credit, here are some steps you can take to try and remove it.

• Review your credit report: Get a free credit report from each major credit bureau through AnnualCreditReport.com. Look for any inaccurate or outdated information tied to the closed account.
• File a dispute: If you find an error, you can dispute it with the credit bureau. This can be done online or by mail. Include any documents that support your claim, such as payment records or account statements.
• Send a goodwill letter: If the account was closed with some late payments but is now paid off, try writing a goodwill letter to the creditor. Ask them to remove the negative mark based on your overall payment history.
• Negotiate a pay for delete: If the account was sent to collections and you still owe money, you may be able to negotiate a pay for delete agreement. This means the collector agrees to remove the account from your credit report in exchange for payment.
• Consider professional help: If you’re not sure where to start or your efforts aren’t working, a reputable credit repair company may be able to help. They can guide you through the process and handle disputes on your behalf.

How Long Closed Accounts Stay on Your Credit Report

Closed accounts don’t disappear right away. How long they stay on your credit report depends on how the account was handled.

Positive closed accounts usually stay on your credit report for up to 10 years from the date they were closed. That extended history can help your credit score, especially if the account was paid off in full with no missed payments.

Negative closed accounts, like those with late payments, charge-offs, or collections, usually remain on your credit report for up to 7 years from the date of the first missed payment. Once that time passes, the credit bureaus are supposed to remove them automatically.

How to Rebuild Credit After Removing a Closed Account

Removing a negative account is a good start—but rebuilding your credit score takes consistent, smart moves. These strategies can help you create a stronger credit profile over time.

Pay Every Bill on Time

Payment history is the most important factor in your credit score. Late payments can set you back fast, so make sure everything gets paid on time, every time.

Keep Credit Usage Low

Try to keep your credit utilization below 30 percent of your available credit. If you can keep it lower, even better. Low balances show lenders you’re not overextended.

Limit Hard Credit Inquiries

Each application for new credit triggers a hard inquiry. Too many in a short time can hurt your credit score, so only apply when necessary.

Apply for a Secured Credit Card

A secured credit card requires a refundable deposit, which usually sets your credit limit. These cards are easier to qualify for and report to all three credit bureaus. Use the card for small purchases, pay it off in full each month, and keep your balance low.

Here are the best secured cards for 2025

Take Out a Credit Builder Loan

A credit builder loan holds the funds in a savings account while you make monthly payments. Once the loan is paid off, the money is released to you—and the on-time payments help build your credit history.

Here are some of the best credit builder loans for 2025.

Monitor Your Credit Report Regularly

Check your credit report for errors or changes. Staying on top of your credit file helps you track progress and spot potential issues before they affect your credit score.

How to Avoid Negative Closed Accounts in the Future

The best way to keep your credit in good shape is to avoid negative marks in the first place. These habits can help you stay ahead of future problems.

• Set up payment reminders or auto-pay: This helps you avoid late payments, which can lead to account closures and credit score damage.
• Keep your credit usage low: Don’t max out your cards. A lower balance keeps your credit utilization in check.
• Communicate with creditors early: If you’re falling behind, reach out before the account gets closed or sent to collections. Many creditors are willing to work out payment plans.
• Stick to a budget: Create a monthly budget that outlines your income and expenses, including your debt payments. Knowing where your money goes each month makes it easier to pay your bills on time and avoid unnecessary debt.

Final Thoughts

Removing a closed account from your credit report can help if the account is hurting your score—but only if it’s the right kind of account. Focus on building good credit habits that support long-term progress.

One account won’t make or break your credit score, but the steps you take today can set you up for better financial options tomorrow.