When (if ever) Do Closed Accounts Drop Off My Reports

[adelpit]

I had an old SEARS/CBNA account, which I closed on Aug 1, 2009. It still shows on my Equifax. It was last reported Feb 15, 2013.

I thought closed accounts fell off your report after 10 years. Will this one disappear in 2013?

Thanks!

[Brian_Earl_Spilner]

They can stay on your reports for up to 10 years. In some rare situations it can stay on longer. If it was in good standing, I wouldn't worry about it as it will only help your profile.

[Ficoproblems247]

Sometimes they don't fall off at the 10 year mark. I have a few coming up on 14 years for me, some have ancient ones that just seem to linger. If it stays on there, that's a great continued boost for your AAoA/AoOA! 

[GApeachy]

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@adelpit wrote:

Feb 15, 2013.

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In 2023?  Who knows...maybe...my SEARS/CBNA was closed around 2005 by me, last reported one day before yours and it's still on my cr's.  I'm happy.....

SEARS/CBNA

Reported: Feb. 14, 2013

+

[longtimelurker]

10 years after last reported date makes sense, though as others have noted in can go much earlier as well.   

[Adkins]

I've got my original student loans still reporting from 2008, on my Experian file, which is why it's always my highest score. Unless it's a negative account, I wouldn't worry about it. 😀

[Anonymous]

I'm fairly certain the standard is 10 years after the account is closed, not the last reported date.  It's pretty easy to get a creditor to re-report an old closed account.  I've done it many times for things like an incorrect representation of my name (suffix issue), wrong or old address etc.  I feel like if it were that easy to get an old account to stay on your reports to artificially inflate AAoA and potentially AoOA we'd have heard about it a lot more on here.

[RobertEG]

The FCRA mandates the exclusion of adverse items of information from consumer credit reports at specified times that vary depending upon the type of adverse information under consideration.  FCRA 605(a) lists certain common types of adverse information with their own specific and unique exclusion provisions in subsections 605(a)(1)-(4), with any other adverse types of information falling under the general, catch-all exclusion provisions of subsection 605(a)(5).

In general terms, those exclusion provisions, as they relate to creditor accounts, provide that derogs reported on an original creditor account have a 7 year exclusion period, usually beginning with the date that delinquency initially began.  They apply to individual derogs reported under an account, and usually not to the entire account.

In the case of a credit card, any monthly delinquencies and/or a charge-off will become excluded at no later than 7 years from the date of initial delinquency, which applies regardless of whether the account is still open or has been closed.  Thereafter, the account continues to be included in your credit report, but without the derogs.  It is thus not to the consumer's benefit  to remove the account, as it has no adverse items of information.

Separate and apart from the required statutory removal of derogs under an account, the CRAs have established their own internal housekeeping policy of removal of accounts at approx 10 years after closure of an account.  That is an informal policy of the CRAs,and thus has no firm exclusion requirement.  While most accounts are removed at 10 years after closure, they occasionally are removed a bit earlier of a bit later.  Lack removal is not disputable, as it is not a statutory or regulatory mandate.

Additionally, apart from the above-discussed exclusions that are made by the CRAs themselves, the reporting creditor can decide to report deletion of derogs or of their entire account at any time of their choosing.  Deletion, for example, may be to their business advantage by removing continued consumer good-will requests, to remove the need to monitor prior reporting for any changed information, or to remove any issues of consumer disputes.

In that event, removal could occur much sooner that the periods discussed above.

You can always contact the creditor and request their voluntary,  good-will removal of items or accounts at any time.

[Anonymous]

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@RobertEG wrote:

Separate and apart from the required statutory removal of derogs under an account, the CRAs have established their own internal housekeeping policy of removal of accounts at approx 10 years after closure of an account. 

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Have you ever heard of the last reported date on an account (if later than the closed date) impacting [lengthening] the time that the account may remain on a CR?

[RobertEG]

No, I have not personally experienced that updated reporting on a closed account can act to lengthen or reset the 10 year period.

While it might, I kinda doubt it.  I speculate as to why it may not be likely..........

The CRAs established the use of 10 years from account closure as their guideline primarily because at that point, what remains in a consumer's credit file is no longer likely to have substantial credit history information that potential creditors might find useful, and thus they would want it included in credit reports they purchase.

Almost all derogs, except for Chpt 7 BK and unpaid tax liens, become excluded after 7 years from initial delinquency, and that 7 year period will begin running prior to account closure.  Thus, after 7 years from closure, all account specific derogs and collections will normally be gone, making the need for such old credit reports kinda useless.

Ten years provides a few years as a cushion.

If any updated reporting is made after closure, that has no impact on credit report exclusion, and thus I see no reason why the CRAs would consider that as a factor in extending their housekeeping removal of essentially partial credit history files.