If you are like most Americans, you understand the importance that each piece of information has on your credit report. As such, if you find information that negatively impacts your score, understanding what you can do is critical. Generally, one thing that many are unsure how to handle is the inclusion of a closed account on their report. If this reflects your circumstances, the following blog explores what you should know about these matters and how to remove an account from your report. Additionally, you’ll discover how a San Diego consumer lawyer can assist you through these matters.
How Can a Closed Account Impact My Credit Score?
When you have any account on your credit report, it will have a positive or negative impact, even if it is closed. For example, if you have a closed account you made on-time payments for, it can still benefit your credit score, even if only a little. However, this means that if you were late on payments for an account, even if it’s closed, this payment history can negatively impact your credit score. A closed account in poor standing can affect your credit for seven years, while one in good standing will influence your score for ten years.
As such, you do not technically have to have closed accounts in good standing removed from your credit report. However, if you have ones hurting your score, it’s in your best interest to have them cleared from your account.
How Do I Have This Removed?
If you have closed accounts that negatively impact your credit and you want to have them removed, there are a few options. Generally, the first thing you can do to have this information erased from your account is to write a “Goodwill” letter to the creditor. If you were only late on one or two payments, you can ask to have this account removed from your report, and explain why you were late on the payment and what you have done to ensure it will no longer happen. However, it’s important to understand that the creditor is not legally required to comply.
If you were late on several payments or missed many, you may be able to write a “pay-for-delete” letter. This essentially allows you to offer the creditor of a charged-off account payment to have a negative account closed. Again, a creditor does not have to accept the offer. If they agree, however, be sure to get the agreement in writing before you pay them, as some have been known to take the payment without deleting the information on a consumer’s credit report.
Another option you may wish to pursue is to dispute the inclusion of the account on your credit report. However, there must be something wrong with the account, such as reporting it as opened or the information is the result of fraud for the dispute to be investigated and potentially remedied if there is an error.
If a closed account on your report is negatively impacting your credit, it’s essential to connect with an experienced attorney who can help you fight to have the information removed. At Barthel Legal, we understand how complex these issues are, which is why we are here to help. Connect with us today to learn more about these matters.
