How long does a closed account affect your credit score?

Question

Specifically a credit card account...

Answer 1

I think everyone here is totally confused by your question.

A "closed account" generally is an account in good standing that has been closed by either the consumer or the credit lender. For example, if you decided you didn't want to use the card again, you could close it. If your credit lender decided that you were abusing your account, or you were becoming a risk, they could close the account.

In either situation, it has a negative effect, but only for a short period. How much depends on your total credit situation.

It effect it in two ways. It will erase a portion of your credit history, which is important because lenders will no longer see your good payment history. And it will lower your available credit, which messes up your debt/credit ration. I won't go into a full discussion on this..it's been covered many times in pass messages.

Now I think the other responders are getting confused and think you mean the account is being closed due to non-payment. Other terms are charge-off's or write-off's. If this is the case then obviously it's going to have a bad effect on your credit. These items stay on your history for 7 years, beginning on the date of the delinquency (the day you missed your last payment).

Answer 2

This account will be reported for 7 years, so your experience with the account will be a factor for all that time. If the question is whether closing an account can improve your score by reducing the number of credit card accounts, that is a different question. Open accounts may be assumed to have certain payments whether you use the card or not. In this case, closing the account is helpful.

Answer 3

i do believe its about 7 sevens .i have closed credit card accounts about 3 years ago not knowing it will affect my credit score ,the accounts were paid in full at the time .so its been 3 years and i was told it would stay on for seven

Answer 4

Hi!
The person above this post has it backwards.
Accounts closed in good standing stay on your report for ten years..and bad ones *may* roll off by themselves in 7.

I say it that way because I just had to file two complaints with two of the bureaus for two lines that the 7 year clock had ran on..and they were not removed automatically.

They are gone now, though.

Now..that's cleared up..back to the real question.

The correct answer is: It depends.

Closing a account may have positive or negative results..it depends on the situation.

It depends on many things..the biggest part being how many other lines do you have on your report? What is your debt to income ratio?
How many other lines are positive? How many other lines are negative?

If your debt to income ratio was very high before you closed this account..and is lowered because you closed it...and you have other positive lines on your report..it will be a positve thing.

If not..it may be a negative thing. It just depends on your sitch. Many other factors go into the score..have you moved recently? Changed jobs recently? Etc...etc.

Many people think a score will rise by itself just by letting the negative lines roll off. This is true..but if you do not have positive lines to replace them (or supplement) them with..it takes a very long time.

Answer 5

Unless the account was in default, it stops affecting your score as soon as it is closed. The reason many people advise against closing accounts is that having the account open can affect your score in a positive manner.

Answer 6

If it's a good standing account then it will go away in 7 years and if it's negative it will go away in 10 years.

Answer 7

Depends on if you close it or if the card closed it...if you close the account make sure you tell them to note that on your report

Answer 8

it is always there, those don't come off your credit report they will be there forever as a closed account.

Answer 9

negatively - seven years

Answer 10

not long