Once a line of credit is closed, it can continue to show up as closed on your credit reports until it eventually is removed or falls off. Closed accounts in good standing will typically remain on your reports for up to ten years. Negative payment history for closed accounts can remain on your reports for up to seven years.
A credit account may be reported as closed for a variety of reasons:
- You paid off or refinanced a loan
- You requested a credit account to be closed
- Your creditor closed an account due to inactivity
- Your creditor canceled an account because of delinquencies
A credit bureau could mistakenly report an open account as closed. If you believe your account is reported as closed by mistake, you may want to reach out to your lender. You can also file a dispute with the credit bureau where the account is showing up as closed.
Read more about why a credit account might have been reported as closed: Why is my account reported as closed?
A closed account can impact your credit scores, depending on the scoring model and your credit situation. A credit account being reported as closed can shorten your age of credit history and may cause a drop to your credit scores.
Closing a credit card can also shorten your average age of credit history. Read more about what to consider when closing a credit card account: How to cancel a credit card: The do’s and don’ts every cardholder should know.