How To Get Closed Accounts Off Your Credit Report?
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we will explain how closed accounts can be removed from the credit report below:
It is a record of your credit history that can include past credit cards, loans, and even a cell phone payment. It summarizes your credit history in a three-digit number that reflects your creditworthiness as perceived by lenders. Credit bureaus do not delete closed accounts from your credit report even if you have closed the particular account willingly or if it was frozen by any other party and this section will remain on your credit report for about 10 years. Positive information remains on your credit report as evidence of one’s responsible use of credit while closed accounts bearing negative remarks may have a rather negative effect on your credit report. If, however, there are closed accounts that you want to be deleted from the credit report early here are the things you can do.
Check status on Closed Accounts on Credit Report The first step is to go to AnnualCreditReportcom, and obtain a copy of your credit report to note all the closed accounts. If an account is closed and remains open with no balance and no activity, then its status should be “Closed” while if the account is closed due to non-payment or for any other reason then the status should be negative such as “Charged off”. Note for how long an account has been closed. Those that have been shut down recently will be challenging to eliminate Comparing the two, it can be argued that more recent closures will be more challenging to eliminate than those shut down some time back.
Sign/Write Goodwill Letters to Creditors If you have closed accounts with negative marks that are more than a couple of years old you could contact the creditor and request them to delete this information from your credit report voluntarily as a goodwill gesture This can be done by writing a letter to the creditor stating the events that led to the closure of the account, your good record since then, the age of the account, and a polite request that they remove this information from your credit report as a sign This enhances the use of politeness and good faith with a view of persuading creditors to contribute to the improvement of the credit score.
Dispute Closed Accounts If the creditors refuse to delete the closed accounts from your credit report willingly, then you have to dispute the accounts through the three major credit bureaus. Since you will be submitting the closed accounts to each reporting agency, then you will have to lodge complaints with each of the agencies. Equifax, Experian, and TransUnion are some of the common agencies that people make use of. You should provide the dispute for each account to explain why that particular account should be deleted. The agency, in turn, reaches the creditor reporting the account for confirmation. It is important to note that the creditor has 30 days to provide proof to the agency that the account indeed belongs to the consumer, or else the agency is required by law to delete it from the report.
Continue Disputing The credit reporting system is also cumbersome and there are times that creditors do not have time to respond to the dispute within the legal time limit. When dealing with closed accounts, it may require several rounds of arguing with the credit reporting agency to have the accounts deleted from the credit report. If the initial controversies are not satisfactory, then proceed with such a process. If you still find it hard to deal with the process then you can seek help from a credit repair agency. This should help you recover since closed accounts should be removed from your credit report at some point when you are persistent enough.
Negotiate Pay-for-Delete Agreements In particular, attempt to settle for closed accounts containing negative marks that are less than two years old on pay-for-delete solutions with the corresponding creditors. This involves making the agreed amount of negotiated payment towards the balance due to receive a promise from the creditor that the account will be removed from your credit report. Ensure that such an agreement is put down in writing before you go out for a party. However, it is essential only to agree to this if you can afford the amount being negotiated; otherwise, other negative remarks may appear on your account.
Manage Accounts Carefully As you continue to use the credit accounts be very careful not to have new negative marks on your credit report. Always pay the monthly minimum on all the accounts. If you can no longer afford to make the minimum payment required for an account, you need to seek the creditor’s assistance. In some incidences, closing accounts that you have as the account holder will also hurt your credit score. First, creditors should always be dealt with politely in a bid to settle the issues without involving any third party.
This requires some effort as mentioned above but closed accounts should be removed from your credit file earlier to give a boost to your credit score. Creditor relations and negotiation strategies always require persistence, goodwill, and disputes among other factors. To minimize the instances that one may require closed account removals, ensure that you make the payments appropriately. This will keep on enhancing the credit score as long as one continues to exhibit good manners as a borrower.
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