3 Ways To Remove A Closed Account From Your Credit Report

How to Eliminate a Credit Account that has been Closed?

One of the reasons that having a closed account on your credit report can be detrimental is that it will bring down your score. You may notice that some of these accounts remain active longer than you want to when paying off balances and closing credit cards you no longer use. On a positive note, there are some things you can do to have a closed account removed from your credit report. Here are three methods you can try.

Dispute the Closed Account Another way to deal with a closed account is to dispute its existence and get it erased quickly and easily. It is as simple as filing a dispute with the credit reporting agency arguing that the account should not be included in your report. Here is a step-by-step guide on how to dispute a closed account.

• Step One: To start with it is recommended that you get a copy of your credit report from AnnualCreditReport. com. Check all the reports and define which accounts should be deleted after the closure of activity. Ensure that the account has been closed and is not merely dormant.
• Step Two: Place the emphasis on the account and write that, to your knowledge, this item is not correct. There may be an option to file a dispute inside the credit report platform. Or perhaps you need to write a dispute letter that you will forward to the credit bureau.
• Step Three: Write down the reasons why you are disputing the accuracy of the accounts or why they should not be in your credit file. For instance, if the account closed many years ago, state that due to its age, it should not be included in the factor score. But if you have evidence that the account was closed or paid, submit that as evidence.
• Step Four: Make and send copies of any proof along with the dispute to the credit bureau. It is also important to note that you should retain copies of the actual documents for your office. Always send the dispute through certified mail so that you get a return receipt as proof that the letter was delivered.
• The fifth step: The credit bureau will have thirty days to investigate your dispute claim. Usually, you will be notified by the bureau on which side they agree and if they will proceed to delete the listing or will continue to keep the closed account report.

If the bureau decides to retain the account on the list, you can either file another dispute or attach more details to your credit file indicating the account status.

Ask for Removal by the Creditor Since the closed account is reported by the original creditor, you may be able to contact them and request them to remove it from your credit file. This can be particularly useful if it has been years since the account was closed.

Follow these steps when negotiating for removal.

• Step One: Contact the creditor for the closed account. Confirm that the account is fully paid or discharged. If possible, obtain documents and evidence to prove that an account balance is zero.
• Step Two: Politely request the creditor to delete the closed account from your credit report since the account is inactive. Make sure to stress that you are in compliance with all other accounts and wish to continue on that path. Be willing to offer references or proof of payment history with other credit companies.
• Step Three: If the creditor has agreed to remove the account, contact them to ensure it has been deleted from all the credit bureau reports. It’s always helpful to jot down some of the details, such as the name of the person you spoke to, the date, and the time.
• Step Four: If the creditor continues to refuse or wants some form of payment before releasing, seek help from credit professionals before proceeding. Occasionally, requesting the creditor to delete the record can be a form of credit repair fraud.

Try Goodwill Letters If you have been a client of this creditor for many years and have never disappointed them, this goodwill letter can persuade the creditor to reopen the closed account. This type of letter just begs the creditor to do the right thing and help out a loyal customer.

Follow these tips when drafting a goodwill removal letter.

• Step One: Identify the right person to contact at the company. Ideally, the letter should be sent to the executive in the lending or credit department of the company.
• Step Two: Address the letter politely and proceed to inform the recipient that this is a goodwill adjustment request.
• Step Three: Provide some information as to when the account was opened and your marital status at the time. Include specifics to prove you have been a good customer.
• Step Four: Describe how having this closed account on the report is a disadvantage to you. For instance, state, you want to get better credit scores or wish to apply for a mortgage.
• Step Five: Politely request the account removal as a favor and appreciation of the fact that you do business with the company. Be ready to give any information that is necessary for the deletion request to be processed.
• Step Six: The last step is to end the letter politely and thank the company as well as compliment it. Provide your contact details, and ask them to call or write you regarding the removal of the closed account.

It is important to follow up on a goodwill request regardless of whether they approve or deny the adjustment. When negotiating, be insistent without being rude.

The Bottom Line closed accounts remaining on one’s credit reports not only negatively affect the score but also pose a potential for fraud if the account details are compromised. In this case, here are the steps that you can take to reclaim your credit file from the credit reference agencies The following procedures will help you regain control of the credit file from the credit reference agencies when you want to remove accounts not in use anymore: Try to figure out which one is more effective considering your experience with the certain creditor. It also helps you to spot unwanted closed accounts early enough so that they do not affect your ability to borrow.

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