Sample Letter to Remove Closed Accounts From Credit Report

A closed credit account is no longer active, meaning that no future transactions can be processed. For example, a credit card holder may choose to close their account if they no longer use the card, have fears of identity theft, or have financial hardship.

A misconception exists that closing a credit card or paying off a car or student loan will remove any details related to the account from your credit report. Credit reports do contain closed accounts from data furnishers that continue to impact your credit and might be best removed.

What a Remove Closed Accounts Letter Can Accomplish                  

A closed accounts removal letter may present an opportunity to boost your credit score, particularly when involving negative entries.  Some of the key elements of these letters include your name and account information, taking responsibility, and citing your efforts to improve.

A Sample Letter Template               

John Smith
123 Main Street
Los Angeles, CA 90232

RE: Account #02-44575

10/10/2021

XYZ Credit Monitoring Services
Debt Settlement & Payment Department
2010 Experian Rd.
Chicago, IL 60018

To Whom It May Concern:

The credit information currently on my credit report contains an entry showing a late payment for March 2018 for my closed XYZ credit card account #02-44575.

I acknowledge that I was unable to fulfill the terms of the account agreement by failing to properly adhere to the monthly payments. In late February 2018, I was involved in a serious bicycle accident that resulted in my inability to work for several months.

During the period of my recovery, I struggled to maintain my financial obligations and had late payments. I have since been carefully budgeting and satisfying all of my monetary responsibilities and payments to improve my credit score.

It would assist me tremendously if you could make a goodwill adjustment that removes this negative payment entry from my three credit bureau reports. This is a closed account that represents a past failure that I am hopeful will not continue to hinder my future.

Thank you for your consideration.

Sincerely,

John Smith

Do These Letters Work?        

There are no assurances or guarantees when sending these types of goodwill adjustment letter requests; however, they are worth the effort. Some lenders reply to consumer disputes stating that they have policies against granting these and other goodwill letter requests—but others may not.

Time Frame for Removal of Credit Entries

Currently active accounts in good standing	Ongoing/indefinite
Closed accounts that were paid (settled account)	10 years
Late payments or missed payments	7 years
Unpaid collection accounts	7 years
Bankruptcy (Chapter 7)	10 years
Bankruptcy (Chapter 13)	7 years
Hard credit inquiry	2 years

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