Many people close their credit accounts that they no longer want, thinking that the account will be automatically removed from the credit report. Unfortunately this is not the case. The law allows credit bureaus to attach all accurate and current information to a credit report. Information can be removed from the credit report only if it is inaccurate, out of date or the creditor agrees to delete it. Can I have closed accounts removed from my credit report?
Myths about creditworthiness about credit cards
However, your question is good because it allows me to refute some myths about credit scoring.
This is one of those subjective assumptions about credit that came out of favor when credit scores began over 25 years ago, but consumers, and even some lenders, still think they are qualified for creditworthiness.
Several such negative assumptions include:
The card indicating “closed by the creditor” (or in this case “closed due to non-use”) in the credit report may be the result of some basic negative information that the creditor closing the card knows about and which is not reflected in the credit report.
A query that is not accompanied by a new account from the same creditor in the credit report indicates that the application was rejected because if the application were approved, a new account would appear in the report.
Even for consumers with a flawless payment history, the large amount of unused available credit indicates a greater likelihood of future payment problems if the cardholder finds himself in a situation where the temptation to overcharge is too great to resist.
Removing closed accounts from a credit report
In some cases, closing your account may have a negative impact on your creditworthiness. This is especially true if the account was closed late, such as late payment or repayment. The payment history is 35% of the creditworthiness rating, and any delay in payment may lower the creditworthiness rating, even if payments were delayed after the account was closed. If you can remove a negative account from your credit report, your credit score could potentially improve.
Closed accounts are still being reported
Closed accounts that are in good standing remain on your credit report for up to 10 years. Those that have any negative history, such as collector’s items, can spoil your report for seven long years (though the negative impact fades over time).
Reporting a dispute with a credit bureau to remove this closed account from the report would be an option if any inaccurate information is reported.
If there is nothing wrong reported about this closed account, you can try to ask the lender for “goodwill” to remove this account from the credit report. It is up to the lender to agree to such a request, which depends on whether he wants to remain in your good favors.