How Long Do Closed Accounts Stay on Your Credit Report?
5 Min Read | Last updated: June 16, 2025
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Closed accounts can stay on credit reports for seven to 10 years, and they may have either a positive or negative impact on your credit score.
At-A-Glance
- When you close a credit card account or a loan, it’ll continue to show up on your credit report for several years.
- A closed account can have positive and negative impacts on your credit score – even if it was closed under the best of circumstances.
- In the long run, keeping an account open for longer may help boost your credit score by increasing the length of your credit history.
Many people are surprised to learn that a closed credit card account can remain on your credit report for up to 10 years if the account was in good standing when you canceled it. Equally important to know is that the closed account can remain on your report for seven years if it wasn’t in good standing at the time. If, say, it was closed for missed payments.1 Over the long run, having a closed account on your credit report may or may not be good for your credit score, depending on the status of the account when it was closed.
But there are other implications of closing a credit card or installment loan that are more immediate and might even temporarily lower your credit score at the time the account is canceled. It's crucial to understand all the possible impacts of a closed account.
Why Do Closed Accounts Stay on Your Credit Report So Long?
Credit card companies and other lenders are interested in your closed accounts as part of your complete credit history. In the typical course of business, lenders supply information on your spending and payments to credit reporting agencies, which summarize it all into credit reports that are used to calculate your credit score.
Then, lenders refer back to these reports and scores to assess the risk of approving your application for a new Credit Card or other type of loan and to set the interest rate in line with that risk. Information from closed accounts may help lenders get a deeper insight into a person’s past payment history.
What Does a Closed Account Mean on Your Credit Report?
A closed account on your credit report shouldn’t worry you if the account was well-managed and in good standing at the time it was closed. Having it remain there as a positive reflection on your credit history and a track record of on-time payments can help maintain a good credit score.
The reasons for a closed account can vary, but may include:
- You no longer benefitted from keeping a credit card as your spending habits and reward preferences changed. (Instead of closing the account, you may instead decide to upgrade your credit card to one that better matches your new preferences.)
- You rarely used the card, and the card issuer closed the account.
- You paid the account in full, and the personal loan, mortgage, or other installment loan is no longer active.
- You paid the account in full and want to consolidate your credit accounts.
- You fell behind with payments, and the lender closed the account.
- The account was closed in error.
Any negative information about a closed account on your credit report could lower your score. This can be the case if you made late payments on the account or if it was referred to a debt collector.
Impact of Closing Your Account
Even if you’re closing an account that’s in good standing, there are still several possible implications for your credit score.
- Decreased Length of Credit History
If you’re closing one of your oldest cards, you could lose several years of your history as an active and responsible borrower. The age of your credit history accounts for an estimated 15% of your FICO credit score.2 - Fewer Mix of Credit Types
Lenders may like to see a mix of revolving credit (such as credit cards) and installment credit (such as personal loans). Closing one type might affect your mix of credit, which determines an estimated 10% of a FICO score.3 - Higher Credit Utilization
After closing a card, you may see an increase in your credit utilization rate (how much you’re using of your total credit) as you’ll suddenly have less credit available, especially if you weren’t using the card very often. Credit utilization makes up an estimated 30% of your credit score, and a higher utilization rate may mean a lower credit score.4
Can You Remove a Closed Account from Your Credit Report?
It’s not easy to remove closed accounts from your credit report unless the information is inaccurate. According to the Consumer Financial Protection Bureau, common errors related to closed accounts include closed accounts reported as open and the same debt listed more than once, potentially under different names.5 If you find information on your report that you believe is inaccurate, you can send a letter to both your lender and the credit reporting agency. Instructions on how to dispute inaccurate information can be found in your credit report.
How to Close a Credit Card Account or Loan
Sometimes you may weigh the factors and decide to close an account even if it means a temporary dip in your credit score. Maybe closing the account will help you control spending, for example, or maybe the card or loan in question is costing you fees or interest that you’d rather not pay.
To close a credit card account or loan, follow these steps:
- Pay off your account balance.
- Redeem or transfer any credit card rewards, if applicable.
- Contact your card issuer or lender’s customer service department to request account closure either by phone or in writing.
- Check your credit report in the following months to ensure the account closure appears correct. You can check your credit report and score for free with American Express® MyCredit Guide.
To close a loan account, all you have to do is pay off the loan in full. Your lender may contact you via mail or email to confirm the loan has been paid off. Once you receive confirmation of the account closure from your card issuer or lender, you can destroy any physical payment cards.
Frequently Asked Questions
There are plenty of ways to build credit. Paying your monthly credit card bill on time and in full every time, paying down existing debt, and keeping accounts open may help build credit over time.
While many credit transactions fall off your credit report after seven years, this can depend on many factors including the type of debt, the lender, state laws, and the circumstances of the transaction.
The Takeaway
Since closed accounts can stay on your credit report for many years, it’s worth considering the impact before closing a credit card. A closed account in good standing can positively impact your credit history and score, while negative marks on a closure may lower it.
1 “When Are Closed Accounts Deleted?,” Experian
2,3,4 “Credit Scores,” MyCreditUnion.gov
5 “What are common credit report errors that I should look for on my credit report?,” Consumer Financial Protection Bureau
Karen Lynch is a journalist who has covered global business, technology, finance, and related public policy issues for more than 30 years.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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